2026.04.3009:39:52UTC+00Euro Area Annual GDP Growth Slows

Euro Area GDP grew by 0.8% year-on-year in the first quarter of 2026, undershooting market expectations of 0.9% and slowing from 1.3% in the previous quarter. This was the weakest expansion since the second quarter of 2022. The loss of momentum coincided with an energy shock stemming from the conflict in the Middle East, which has driven sharp increases in the prices of key energy commodities since early March. Weaker household consumption was evident across the bloc’s largest economies, with growth moderating in France (1.1% vs 1.3% in Q4 2025), Germany (0.3% vs 0.4%), Italy (0.7% vs 0.9%), and the Netherlands (1.2% vs 1.8%). Spain remained the standout performer, with GDP expanding by 2.7%, up from 2.6% in the previous quarter.