Eurozone economic growth was confirmed at 0.1% in the first quarter of 2026, the weakest expansion since Q2 2025. The slowdown reflects mounting pressure from constrained energy supplies following the Middle East conflict, which disrupted flows of crude oil, refined products, and liquefied natural gas. Inflationary risks stemming from these shortages have led ECB policymakers to contemplate additional interest rate hikes this year, while the bloc’s largest economies have revised their growth projections downward.
Among the Eurozone’s major economies, France’s output was flat, whereas the Netherlands and Italy posted modest gains of 0.1% and 0.2%, respectively. Germany recorded a slight pickup, with GDP expanding by 0.3%, and Spain outpaced its peers with a 0.6% increase. On an annual basis, GDP growth eased to 0.8% in the first quarter, down from 1.3% in the previous quarter.
