The Euro Zone Economy grows 0.4% in the first quarter ahead of Trump’s rates

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The Euro Zone Economy grew 0.4 percent in the first three months of the year, exceeding expectations, ahead of Donald Trump’s tariff ads in early April.

The figure was twice as much as 0.2 percent of the previous quarter, according to an Eurostat Flash estimate of the Statistical Office of Europe. The economists surveyed by Reuters had planned that GDP would constantly maintain this level.

Most analysts expect the world trade war to trigger the President of the United States on the “liberation day” on April 2, will damage the subsequent economic performance of the euro zone.

The data from the survey in recent weeks have indicated that business confidence in the euro area had deteriorated significantly since the President of the United States announced its homework, while growth has been approached zero.

Carsten Brzeski, a worldwide Macro de l’EG, warned on Tuesday in a note to customers, despite the partial suspension of Trump’s tariff ads and exemptions for some goods, “applied rates are even higher than earlier this year.”

Brzeski added that “the threat of more to come is still hanging on the global economy” and that persistent uncertainty would be “another cushioning factor of economic activity in the euro zone”.

The euro was changed shortly after the release of Wednesday data to $ 1,137.

The European Central Bank reduced its growth prediction from 2025 to 0.9 percent last month, its sixth consecutive reduction, and is expected to reduce it even more in its forecasts updated in June.

The Central Bank warned that the growth prospects had been “damaged due to the increase in commercial tensions” when it reduced interest rates in April for the seventh time from June to 2.25 percent.

The figures published at the beginning of Wednesday showed that the German economy grew 0.2 percent a first quarter compared to the previous period of three months, according to expectations.

The largest economy in Europe had hired 0.2 percent in the last quarter of 2024.

France’s economy barely grew in the first quarter, increasing 0.1 percent, as 0.1 percent has been hired in the last three months of 2024.

This is a development story