Eurozone Growth Slows to 0.3% in Q1, Revised Below Initial Estimate

Revised data from Eurostat show the eurozone economy grew by 0.3% in the first quarter of 2025, down from an earlier estimate of 0.4%, indicating slower expansion than initially reported. Despite this downward revision, the growth rate still marked an improvement over the previous quarter, supported by a rebound in the industrial sector and steady job creation, with employment rising by 0.3%. The slower growth comes amid heightened uncertainty from U.S. tariffs on European goods, which are expected to dampen investment and consumption in the coming months. European Central Bank officials are considering further interest rate cuts in response to these economic challenges, with revised growth projections expected soon. Although the eurozone's growth slowed, it remains stronger than the U.S. economy, which contracted by 0.1% in the same period. The EU continues negotiations with the U.S. to avoid a broader trade conflict, but remains prepared to impose retaliatory tariffs if necessary.