Euro Area GDP Falls 0.2% in Q1 as Employment Edges Up 0.1%
Updated
Updated · European Commission · Jun 5
Euro Area GDP Falls 0.2% in Q1 as Employment Edges Up 0.1%
3 articles · Updated · European Commission · Jun 5
Summary
Eurostat said euro-area output shrank 0.2% quarter on quarter in Q1 2026, reversing a 0.2% gain in Q4, while employment still rose 0.1%.
Net trade cut 0.3 percentage points from growth, with investment and inventories also negative, outweighing small positive contributions from household and government spending.
Annual growth also slowed sharply: euro-area GDP rose 0.3% from a year earlier after 1.2% in Q4, while hours worked fell 0.2% from the previous quarter.
Ireland posted the steepest GDP drop at 12.1%, while Denmark led gains at 1.9%; in employment, Lithuania rose 1.8% and Romania fell 1.0%.
The figures contrasted with a 0.4% quarterly GDP increase in the United States and reflect the euro area's new EA21 composition after Bulgaria joined on Jan. 1.