The eurozone economy contracted by 0.2% in the first quarter of 2026 compared to the previous quarter, reversing forecasts for 0.1% growth, due to a sharp downward revision of Ireland's GDP to –12.1% and weaker-than-expected performance in France. This marks the first quarterly contraction since late 2022, and the European Central Bank is expected to signal additional economic weakness for the second quarter while raising interest rates for the first time in nearly three years amid inflation climbing to 3.2% annually.