Euro area and EU GDP growth slows to 0.1% in first quarter of 2026, Eurostat says

Brussels, Belgium. Seasonally adjusted GDP rose by 0.1% in both the euro area and the EU in the first quarter of 2026, according to Eurostat’s preliminary flash estimate. The reading marked a slowdown from 0.2% growth in both regions in the fourth quarter of 2025.

Euro area and EU output loses momentum

Eurostat said that, compared with the same quarter a year earlier, seasonally adjusted GDP increased by 0.8% in the euro area and by 1.0% in the EU in the first quarter of 2026. The figures decelerated from 1.3% in the euro area and 1.4% in the EU in the final months of 2025.

Cyprus forecasts revised lower

The Economics Research Centre of the University of Cyprus said Cyprus’ real GDP growth is expected to moderate from 3.8% in 2025 to 2.9% in 2026, before a minor recovery to 3.1% in 2027. It said the projections represent downward revisions of 0.6 and 0.3 percentage points respectively compared with earlier forecasts, citing economic headwinds linked to escalating tensions in the Middle East.

Quarterly performance across member states

Among member states with available data, Finland recorded the highest quarterly increase at 0.9%, followed by Hungary at 0.8%. Estonia and Spain both registered increases of 0.6%, while Ireland recorded a contraction of 2.0%.

How do you think the slower GDP growth in the euro area and EU could affect your finances this year?