Eurozone economy slows to 0.8% in Q1 2026: stagflation warning lights flash across Europe
Eurozone Q1 2026 GDP grew just 0.8% year-on-year as the Iran war reshapes the European economy. What the slowdown means for the months ahead.
Macro, markets, ECB, trade, fiscal policy
Eurozone Q1 2026 GDP grew just 0.8% year-on-year as the Iran war reshapes the European economy. What the slowdown means for the months ahead.
The ECB held rates at 2% on 30 April 2026 for a third consecutive meeting, balancing 3% inflation against 0.8% growth, with the Iran war complicating the outlook.
Investors are betting on a possible ECB rate hike in June or July 2026, with traders fully pricing in three hikes by year-end.
Eurozone inflation reached 3 percent in April 2026 as the Iran war pushed energy prices higher and dimmed prospects of further rate cuts.
European Central Bank keeps deposit facility rate at 2 percent for the tenth straight month, with markets pricing in a possible summer hike.