Eurozone Q1 GDP Confirmed at 0.1% QoQ, Q4 Revised Lower
Eurozone Q1 GDP growth was confirmed at 0.1% quarter-on-quarter, matching the preliminary estimate, while Q4 was revised slightly lower, reinforcing a fragile recovery.
Eurozone GDP growth for the first quarter was confirmed at 0.1% quarter-on-quarter, matching the preliminary estimate, while the fourth quarter figure was revised slightly lower.
The second estimate from Eurostat showed no change from the initial reading, reaffirming that the euro area economy managed marginal growth at the start of the year. The only notable revision was a downward adjustment to Q4, which now points to a slightly weaker end to 2025. This leaves the overall growth trajectory fragile, with the economy barely expanding.
For currency traders, the data reinforces the view that the eurozone recovery remains tepid, which could limit the European Central Bank's appetite for hawkish policy shifts. The euro may struggle to gain traction against currencies where central banks are more aggressive, such as the US dollar or the pound. The interest-rate differential between the ECB and other major central banks remains a key driver for EUR/USD, and any further weakness in eurozone growth could widen that gap. Live FX prices and charts on NowPrice show how the market is reacting to the latest GDP data.
Looking ahead, attention turns to the impact of rising energy prices on economic sentiment in the coming months. Higher oil and gas costs are already dampening household and business confidence, which could weigh on consumption and activity in the second quarter. Traders will watch upcoming PMI readings and ECB commentary for clues on whether the central bank will adjust its policy stance in response to the evolving growth and inflation dynamics.