Euro Zone Growth Surpasses Expectations Amid Trade Tensions

The euro zone's economy experienced unexpected growth in the latest quarter, expanding by 0.4% despite looming threats from U.S. tariffs and rising tensions with China. While Germany and others showed resilience, the bloc continues to trail the U.S., and faces challenges from a struggling industrial sector and stagnant household consumption.

The euro zone's economy demonstrated stronger-than-anticipated growth in the last quarter. It expanded by 0.4%, exceeding predictions, but persistent trade tensions involving the U.S. and China keep the outlook uncertain.

Germany, the largest economy within the bloc, showed unexpected resilience with a 0.2% increase, though its industrial sector struggles weigh heavily. In contrast, U.S. growth remains robust, emphasizing a widening economic gap between the regions.

U.S. trade policies, including potential tariffs, pose significant challenges for Europe's trade-reliant economy. Meanwhile, Europe's industrial sector continues to grapple with challenges, and household consumption remains subdued, hindering overall growth recovery.

(With inputs from agencies.)