Eurozone growth is weak, inflation is rebounding, and the risk of "stagflation" is becoming apparent.

The latest data released by the European Union's statistics office on April 30th shows that the Eurozone's economic growth is weak, with inflation rebounding. Against the background of conflicts in the Middle East and soaring energy prices, the Eurozone's economic outlook is dim, and the risk of "stagflation" is rising. The data from the EU statistics office shows that in the first quarter of 2026, the Eurozone's economy only grew by 0.1% compared to the previous quarter, significantly slowing down from 0.2%, performing below market expectations. At the same time, influenced by the soaring energy prices, the Eurozone's inflation rate in April rose to 3.0%, reaching the highest level in nearly three years, significantly higher than the European Central Bank's target of 2%. Analysts believe that the conflict in the Middle East has caused a global energy supply tension, pushing up prices and weakening the confidence of businesses and consumers. The German government has reduced its economic growth forecast for 2026 to 0.5%. The International Monetary Fund has also lowered its growth forecast for the Eurozone this year from 1.3% to 1.1%, and warned that rising prices and slowing economic activity are pushing the Eurozone towards "stagflation".