Freight containers are stacked in the east of the banking city on the site of the DB envelope station. The skyline of the banks' skyscrapers rise behind them. US President Trump's aggressive US US -ZULL policy can also be seen as a trade war against the rest of the world.
Photo by Arne Dedert/picture Alliance about Getty Images
The economy of the euro zone grew by a stronger than expected 0.4%in the first quarter. The flash data of the Statistics Authority Eurostat showed on Wednesday when the global tariff voltages on the block of the block showed uncertainty.
Economists surveyed by Reuters had predicted an expansion by 0.2% in the first three months of the year after a revised growth pressure of 0.2% in the last quarter of 2024.
The figures published on Wednesday showed that the gross domestic product (GDP) of Germany, the largest economy in Europe, rose by 0.2% in the same period. The French GDP added 0.1% over the three -month route.
Recently, a trend has been overcome and exceeded South European and smaller economies, with the Spanish and Lithuanian GDP increasing 0.6% each, while Italy's economic performance increased by 0.3%. The economy of Ireland, which generally has volatile measured values due to its high proportion of multinational companies, grew by 3.2%in the first quarter.
Franziska Palmas, Senior Europe Economist at Capital Economics, said that the latest GDP reading of the euro zone showed that the economy of the area in 2025 began as an activity surveys.
“Nevertheless, we still expect growth to slow down over the next six months, since the US tariffs introduced in April will meet the activities,” said Palmas, adding that every thrust of the huge fiscal stimulus, which is expected in Germany, can be felt largely next year.
The euro was chopped off on Wednesday and after the pressure at 10:35 a.m. in London at 10:35 a.m. and was 0.2% higher against the British pound. The 10-year-old borrowing return in Germany, which was seen as a benchmark for the euro area, was three basis points lower.
The economic growth of the euro zone was poor for a large part of 2023 and 2024, even when the European Central Bank reduced interest rates to promote growth and increase economic activity. The ECB's deposit facility set, the KELTZINS, was reduced to 2.25% from 4% in mid-2023 in the early this month.
The ECB in March announced that the economy of the euro zone grows by 0.9% in 2025, which is somewhat below the forecast in January. Fresh projections are published in June, whereby the political decision -makers of the Central Bank propose the CNBC last week that the forecasts for the tariff decision process would prove decisive.
On the sidelines of the spring meetings of the World Bank's International Monetary Funds, political decision -makers and other economists and civil servants largely stated the US tariff policy in terms of growth.
ECB President Christine Lagarde found that the “Disinflationary process is so on the right way that we are about to be completed”, but there was Shocks that would “dampen” economic growth.
The European Union, to which the countries of the euro zone belong, will be exposed to 20% of ceiling trade tariffs from the United States, which briefly reduced these measures together with the taxes for other counterparties for negotiations by July. For the time being, the EU has put its own retaliation measures on hold. The block is also subject to additional tariffs on steel, aluminum and cars.
However, the data published on Tuesday showed that the economic mood in the euro area fell in April and has reached the lowest level since December 2024.
While growth was suppressed, the inflation of the euro zone approached the 2% goal of the ECB and was 2.2% in March. The latest publication of inflation data is expected later this week.
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