The eurozone economy contracted by 0.2% in the first three months of 2026, according to a final estimate published on Friday by Eurostat, the EU's statistical office.
The figure marks a sharp deterioration from the 0.1% expansion indicated in earlier flash readings and a reversal of the 0.2% growth recorded in the final quarter of 2025.
Year-on-year, the eurozone's economy grew by a mere 0.3% in the period, down from 1.2% last year, a deceleration that reflects the mounting pressure of the Iran war, which continues to inflict significant damage on European energy supplies, business and consumer confidence.
Ireland distorts the picture, but does not explain everything
The single most striking figure in the Eurostat release is Ireland's 12.1% quarter-on-quarter contraction and a 16.8% decline compared with the same period a year earlier.
