ECB’s Vice President forecasts almost zero growth in eurozone economy from April to September

European Central Bank (ECB) Vice President Luis de Guindos stated that the eurozone economy is slowing due to high uncertainty in international trade. He noted that first-quarter growth was inflated by countries like Ireland and an export surge ahead of anticipated US tariffs. GDP growth may nearly stall in the second and third quarters.

The economist pointed out that consumption growth, previously considered a key driver of economic recovery, has fallen short of expectations. Declining business and household confidence due to external risks is dampening domestic demand and hindering GDP growth.

Meanwhile, eurozone inflation continues to decline. In May, it dropped below the ECB’s 2% target, allowing the regulator to maintain accommodative monetary policy and cut rates in June. According to de Guindos, price dynamics remain positive, particularly in the services sector, supporting the achievement of stable inflation in the medium term.