FX.co ★ Eurozone Q1 GDP Growth Trimmed to 0.3%

In the first quarter of 2025, the Eurozone economy saw an expansion of 0.3%, a slight decline from the initial projection of 0.4%. This marks the fifth consecutive quarter of growth. Contributing to this expansion was increased domestic demand, driven by the alleviation of inflation and reduced borrowing costs, coupled with a surge in optimism following Germany's decision to ease fiscal restrictions. Additionally, anticipated hikes in defense spending in the near future helped mitigate worries about fluctuating U.S. tariff policies. However, the growth momentum might experience a slowdown in the coming months, as the repercussions of new U.S. trade tariffs could start affecting EU exports, while escalating uncertainties could dampen business investments and consumer spending. Among key economies, Germany grew by 0.2%, with Spain and Italy performing better with growth rates of 0.6% and 0.3%, respectively. Conversely, France and the Netherlands reported more modest growth, each recording a 0.1% increase.