30.04.202609:07:13UTC+00Euro Area GDP Unexpectedly Slows

Eurozone GDP grew by 0.1% quarter-on-quarter in the first quarter of 2026, undershooting market expectations for a 0.2% increase and easing from the 0.2% expansion recorded in the previous quarter. The figures highlight mounting pressure from a constrained energy supply across the currency bloc’s major economies, following the outbreak of war in the Middle East, which disrupted flows of crude oil, refined products, and liquefied natural gas.

Concerns over inflationary pressures stemming from these supply risks prompted ECB policymakers to contemplate additional rate hikes this year and led the bloc’s largest economies to downgrade their growth outlooks. France cut its GDP forecasts, and its Q1 output unexpectedly stagnated after a 0.2% gain in Q4. Italy also revised its growth projections lower, with GDP rising 0.2% compared with 0.3% previously, and signaled it may struggle to meet its fiscal targets.

By contrast, Germany’s GDP accelerated, expanding 0.3% after 0.2% in the prior quarter, supported by increased infrastructure and defense-related deficit spending. Growth slowed elsewhere in the bloc, with the Netherlands posting a 0.1% gain, down from 0.4% in the previous period.