The eurozone economy grew by 0.3% in the first quarter, according to revised figures, offering a modest sign of momentum for the currency bloc after a period of weak expansion. The data suggests the region has avoided stagnation for now, even as demand remains uneven across member states.

The European Central Bank is widely expected to lower interest rates again in July, reflecting signs that inflation is cooling. Policymakers have been trying to balance the need to support growth with the risk of easing too quickly while price pressures continue to move closer to target levels.

For households and businesses, another rate cut could gradually reduce borrowing costs, but the broader outlook remains uncertain. Slower global trade, lingering geopolitical risks, and uneven consumer confidence continue to weigh on the eurozone’s recovery path.

Still, the latest figures may give officials some room to ease policy further if inflation data remains benign. Economists will now watch whether the modest first-quarter expansion can carry into the second half of the year or fade under pressure from softer external demand.