Eurozone economy grows 0.3% in Q1 as ECB eyes more rate cuts

The eurozone economy expanded by 0.3% in the first quarter, matching market expectations and offering a modest sign of resilience as policymakers weigh the pace of recovery. The latest reading suggests the bloc has continued to grow, though only slowly, amid lingering pressure from weak demand and higher borrowing costs.

The European Central Bank is signaling that it may lower interest rates again if needed to support growth. That stance reflects concern that the region still needs policy help to keep activity moving, even after earlier efforts to cool inflation.

Economists will now watch whether the small gain in output can translate into broader momentum in the months ahead. For households and businesses across the bloc, future rate decisions could affect borrowing costs, investment plans and consumer spending.