Euro zone grows quicker than forecast before large trade war hit By Reuters

Economic Growth in the Euro Zone: The euro zone economy grew by 0.4% in the first quarter of 2025, surpassing expectations, primarily due to strong performance in Spain and a significant expansion in Ireland driven by foreign companies. However, the overall growth outlook has worsened due to trade tensions with the U.S., leading to warnings from major firms about potential profit impacts.

Challenges Ahead for the Euro Zone: Despite initial growth, the European Central Bank anticipates that ongoing trade wars and deteriorating business sentiment will dampen economic expansion, potentially pushing the bloc closer to recession. While fiscal spending in Germany may provide some support, it is unlikely to have an immediate effect this year.