Published by Global Banking & Finance Review®
Posted on April 28, 2025
1 min readLast updated: January 24, 2026
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Euro zone economy grew modestly in Q1, but faces risks from market tensions and geopolitical uncertainty, says ECB VP. Inflation near 2%.
FRANKFURT (Reuters) -The euro zone economy likely grew at a modest pace in the first quarter of the year but risks have intensified amid exceptional uncertainty that could weigh on growth in the months ahead, European Central Bank Vice President Luis de Guindos said on Monday.
"Euro area exporters are now facing new barriers, and tensions in financial markets and geopolitical uncertainty will likely weigh on business investment," he told European lawmakers in Brussels. "In this environment, consumers may become cautious about the future and hold back spending."
He added that inflation is now expected to hover around the bank's 2% target.
(Reporting by Balazs KoranyiEditing by Tomasz Janowski)
The article discusses the modest growth of the Euro zone economy in Q1 and the risks it faces due to market tensions and geopolitical uncertainty.
The risks include new barriers for exporters, financial market tensions, and geopolitical uncertainty impacting business investment.
The European Central Bank expects inflation to hover around its 2% target.
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