Analysis: The economic situation in the Eurozone is better than expected, but the potential growth momentum has significantly weakened

According to BlockBeats, on April 30th, data showed that the Eurozone economy grew faster than expected in the first quarter, showing a moderate positive trend at the beginning of 2025. The European Statistical Office stated that driven by the rapid growth of the Spanish economy, the quarterly GDP rate of the Eurozone in the first quarter was 0.4%, exceeding the expected 0.2%. However, the potential growth trend has significantly weakened as the data has been distorted by Ireland's 3.2% growth, mainly due to the activities of large foreign companies in Ireland for tax reasons. The GDP of Germany, the largest economy in Europe, only grew by 0.2%, France grew by 0.1%, and Italy grew by 0.3%, indicating that the economic growth rate of the eurozone, except for Ireland, is close to the 0.2% expected by economists. The European Central Bank has stated that in addition to the trade war, the financial market turbulence caused by US policies and the general deterioration of market sentiment will also suppress economic growth. Although the European Central Bank has been rapidly cutting interest rates in an effort to avoid affecting the eurozone and may cut rates again in June, it is relatively powerless in the face of such a massive economic downturn. (Golden Ten)