Eurozone economic growth slowed further in the first quarter of 2026 as higher energy costs, weak industrial activity, and lingering geopolitical uncertainty continued weighing on momentum.
According to Eurostat’s flash estimate, seasonally adjusted GDP rose just 0.1% qoq in the Eurozone, down from 0.2% growth in Q4 of 2025. Across the broader European Union, GDP increased 0.2% qoq, unchanged from the previous quarter. The annual growth picture also weakened noticeably. Eurozone GDP growth slowed from 1.3% yoy to 0.8% yoy in Q1. EU-wide annual growth decelerated from 1.4% yoy to 1.0% yoy.
Labor market conditions remained positive but also showed signs of cooling. Employment growth eased from 0.2% qoq to 0.1% qoq in both the Eurozone and the EU during the first quarter. On an annual basis, eurozone employment growth slowed from 0.7% yoy to 0.5% yoy, while EU employment growth held at 0.6% yoy.
| Indicator | Previous | Latest |
|---|---|---|
| Eurozone GDP (QoQ) | 0.2% | 0.1% |
| EU GDP (QoQ) | 0.2% | 0.2% |
| Eurozone GDP (YoY) | 1.3% | 0.8% |
| EU GDP (YoY) | 1.4% | 1.0% |
| Eurozone Employment (QoQ) | 0.2% | 0.1% |
| EU Employment (QoQ) | 0.2% | 0.1% |
| Eurozone Employment (YoY) | 0.7% | 0.5% |
| EU Employment (YoY) | 0.6% | 0.6% |
