EMEA Macro Snapshot

The Euro area's GDP contracted by 0.2% in Q1 2026, a figure heavily distorted by a 12.1% plunge in Irish GDP. Excluding this idiosyncratic volatility, the broader region maintained a positive growth trajectory of 0.4%.

Key Takeaways

• 1.Euro area Q1 2026 GDP contracted 0.2%, but this is primarily due to an Irish GDP plunge of 12.1%. Excluding Ireland, Euro area growth would have been +0.4%.
• 2.Spain remains the standout economy in the Euro area, supported by robust services exports, dynamic labor markets, and favorable tourism shifts.
• 3.French growth saw a downward revision to -0.1% for Q1 2026, signaling a loss of momentum, while German growth remains fragile with an outlook of 0.6% for full-year 2026.

Table of Contents

• Euro area: Negative growth in Q1, but due to Ireland
• Germanv: Detailed figures moderate the positive surprise seen in Q1
• France: Growth disappointed in Q1, but the post-COVID recovery was stronger than expected
• GDP Growth was stronger than expected in 2022 and 2023
• Italy: The reed that bends but could break
• Spain: still the standout growth story in the euro area

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