Euro Zone Records Subdued Q1 Growth amid Rising External and Economic Pressures
- brg_news_room
- 3 days ago
- 1 min read
GERMANY: The euro zone economy recorded modest growth in the first quarter, according to a preliminary estimate released on Thursday, providing the first indication of economic activity following the onset of the Iran conflict.
As an energy-importing region, the euro zone is considered particularly exposed among advanced economies to disruptions in oil, gas, and other shipments passing through the Strait of Hormuz, which began in late February. Eurostat reported that GDP across the 21-country currency bloc increased by 0.1% quarter-on-quarter in the three months to March, based on a flash estimate—falling short of economists’ expectations and below the 0.2% growth recorded in the previous quarter.
Recent survey data suggests a further deceleration in economic momentum, with weakening business confidence, a slowdown in the services sector, declining profits, and exports continuing to face pressure from tariffs. Additionally, banks have indicated a tightening in credit conditions, adding to concerns about near-term growth prospects.
Source: EuroZone
