EU economic momentum cools in start of 2026

Eurostat has reported that seasonally adjusted GDP increased by only 0.1 per cent in both the euro area and the wider EU during the first quarter of 2026.

This preliminary flash estimate indicates a loss of momentum compared to the fourth quarter of 2025, when GDP had grown by 0.2 per cent in both regions.

The softening of the European economy coincides with a revised outlook for Cyprus, where researchers are warning of a significant slowdown following a robust performance in the previous year.