The Eurozone Is Still Heading For A Slowdown
Source: SeekingAlpha
2025-05-09 03:00:00 ET
Summary
- Eurozone growth surprised in the first quarter with a 0.4% quarter-on-quarter expansion.
- Despite stronger-than-expected first-quarter growth, the eurozone's economic outlook remains bleak.
- While inflation figures for April disappointed, falling energy prices are still likely to push headline inflation to 2% before the end of the year, allowing the ECB to cut rates two more times.
Surprisingly strong growth in the first quarter
Eurozone growth surprised in the first quarter with a 0.4% quarter-on-quarter expansion. We don't yet know all the details of the GDP component, but stronger exports ahead of the US import tariffs were the likely key driver. However, this unusual boost in the first quarter may lead to weaker performance in the subsequent ones. This is already evident in the European Commission’s business and consumer survey, where production expectations in manufacturing fell significantly in April after three consecutive months of increases....
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The Eurozone Is Still Heading For A Slowdown
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