The Eurozone economy expanded by 0.4% in the first quarter of 2025, signaling a modest recovery and a sign of resilience despite rising global risks. Growth was supported by resilient consumer spending, steady investment, and improved performance from key economies like Germany and France. The positive figures come at a sensitive time, as renewed tariff threats from U.S. President Donald Trump raise fears of fresh disruptions to European exports.

Economists warn that while the first-quarter data is encouraging, momentum could slow sharply if tariffs are imposed. Trade tensions, combined with lingering inflation pressures and political uncertainty within the bloc, pose significant risks to the recovery. European policymakers have urged calm but are preparing contingency measures to shield businesses if new U.S. duties take effect.

For now, the Eurozone’s modest growth provides a temporary cushion, but the outlook remains fragile as geopolitical tensions escalate.