Eurozone Q1 GDP Slows to 0.8% as Cyprus, Bulgaria and Spain Grow Near 3%
Updated
Updated · Euronews · May 13
Eurozone Q1 GDP Slows to 0.8% as Cyprus, Bulgaria and Spain Grow Near 3%
3 articles · Updated · Euronews · May 13
Eurostat’s second estimate showed eurozone GDP rose just 0.1% quarter on quarter and 0.8% year on year in Q1 2026, down from 1.3% annual growth in Q4 2025.
Cyprus, Bulgaria and Spain all expanded more than three times faster than the bloc, posting annual growth of 3.0%, 2.9% and 2.7% respectively despite very different risks.
Cyprus led the table, but energy prices jumped 8.7% in April and tourist arrivals fell 30% in March after Iran-linked attacks on UK bases on the island.
Bulgaria’s 2.9% growth came after joining the euro on Jan. 1, yet inflation surged to 6.2% in April and its 2025 fiscal deficit widened to 3.5% of GDP.
Spain remained the standout among the big eurozone economies as domestic demand added 3.4 percentage points to growth, far ahead of Germany’s 0.3%, France’s 1.1% and Italy’s 0.7%.
As Germany’s industrial engine stalls, is Spain’s recovery creating a new economic powerhouse for the Eurozone?
With the Hormuz Strait crisis triggering a new energy shock, can Europe's green transition prevent a deep recession?