The euro zone economy grew by a minimal 0.1% in the first quarter of 2026, according to preliminary data released on Thursday.
The sluggish expansion comes amid intensifying inflationary pressures and ongoing challenges from the Iran conflict, which continue to disrupt regional economic activity.
Inflation in the single currency area surged to 3%, driven by rising consumer prices.
Inflation in the single currency area surged to 3%, driven by rising consumer prices.
The data highlights a growing disconnect between inflation and economic momentum, with growth nearly stalling despite the central bank's efforts to manage price pressures.
Markets reacted to the news with caution, as the data adds to concerns about the region's economic trajectory.
The European Central Bank faces a difficult balancing act as it seeks to control inflation without further dampening growth.