The eurozone economy contracted by 0.2% in the first quarter of 2026 compared with the previous three months, according to final data from Eurostat.
An initial flash estimate had pointed to growth of 0.1%. Analysts polled by Trading Economics had expected that preliminary figure to be confirmed. The decline is the first since the fourth quarter of 2022.
The substantial downgrade stems from a revision to Ireland’s performance, where gross domestic product (GDP) shrank by 12.1% in the quarter – far worse than the previously reported 2% drop.
On an annual basis, eurozone GDP growth was revised down to 0.3% from 0.8%, marking the weakest year-on-year expansion since the fourth quarter of 2023.
In the final quarter of 2025, the bloc’s GDP had grown by 0.2% quarter on quarter and by 1.2% year on year.
Among the largest member states, Germany’s economy grew by 0.3% between January and March, as did Italy’s, while Spain posted a 0.6% expansion. French GDP, however, fell by 0.1%.
Across the wider European Union, GDP declined by 0.1% on a quarterly basis but rose by 0.7% compared with a year earlier. Previous estimates had suggested a 0.2% quarterly rise and a 1% annual increase. A preliminary reading for second-quarter eurozone GDP growth is due to be published on July 30.
