The euro area economy increased by 0.4 % in the first three months of the year, exceeding expectations before taking into account Donald Trump’s tariff messages in early April.
The figure is higher than 0.2 percent, registered in the previous quarter, according to the flash of the Statistical Office of Europe Eurostat. Reuters economists have predicted that GDP will be stable at this level.
Most analysts expect that the World Trade War of the US President at the United States on April 2 will hurt the subsequent economic results of the euro area.
The survey data in recent weeks show that the confidence in the euro area business has deteriorated significantly after the US president revealed obligations as growth is approaching zero.
The euro was slightly changed after the release of data at $ 1.137.
Karsten Breesky, a global macro leader in Ing, warned in a note to customers on Tuesday that despite the partial stop of Trump’s tariff messages and the release for some goods, “the scope is still higher than at the beginning of the year.”
Brearski added that “the threat of the upcoming is yet to hang on the world economy” and that prolonged uncertainty will be a “other subside factor in the euro area economic activity”.
The European Central Bank had already reduced its growth prognosis for 2025 for the sixth consecutive period to 0.9 % and is expected to further reduce it in its updated forecasts in June.
The Central Bank warned that growth prospects were “deteriorating due to increasing trade voltage” when interest rates for the seventh time in April from June to 2.25 percent.
The numbers previously published on Wednesday show that the German economy increased by 0.2 % in the first quarter compared to the previous three-month period, in accordance with expectations.
The largest economy in Europe was concluded by 0.2 % in the last quarter of 2024.
The French economy is barely increasing in the first quarter, rising by 0.1 per cent, concluding by 0.1 % in the last three months of 2024.
This is a developing story