Middle East War Impacts European Economic Divergence: France Stagnates, Germany and Spain Maintain Growth
The Middle East war has led to divergent economic performances in Europe during Q1 2026. France experienced zero growth due to weak domestic and foreign demand, while Spain showed resilient growth of 0.6%, and Germany grew by 0.3%, slightly exceeding expectations, though it may be affected by energy shocks from the Iran conflict.
📋 Article Processing Timeline
- 📰 Published: April 30, 2026 at 19:00
- 🔍 Collected: April 30, 2026 at 19:31 (31 min after Published)
- 🤖 AI Analyzed: May 1, 2026 at 04:24 (8h 52m after Collected)
Central News Agency
(Central News Agency, Paris, April 30, comprehensive foreign reports) Affected by the Middle East war, European countries showed mixed economic performances in the first quarter. France experienced zero growth due to weak domestic demand and a significant negative contribution from foreign trade; Spain demonstrated resilient growth of 0.6%; Germany grew by 0.3%, slightly better than expected, but may be affected by energy shocks from the Iran conflict.
France's National Institute of Statistics and Economic Studies (INSEE) stated today that due to weak domestic demand and a significant negative contribution from foreign trade, the French economy showed zero growth in the first quarter of this year.
Agence France-Presse reported that preliminary estimates of first-quarter Gross Domestic Product (GDP) showed the impact of the Middle East war that erupted on February 28.
Just two weeks ago, the French central bank had estimated the country's economy to grow by up to 0.3% from January to March. INSEE had revised its forecast from 0.3% down to 0.2% at the end of March.
Official data released by Spain today showed strong economic performance, successfully resisting the turmoil caused by the Middle East war, with first-quarter economic growth of 0.6%, in line with market expectations.
Rising energy prices and inflation triggered by the conflict have raised concerns about the global economy, and the Bank of Spain warned last month that economic growth could experience a 'significant slowdown.'
Spain's National Institute of Statistics (INE) announced that economic growth performance from January to March was in line with the trend of an estimated 2.3% growth for the full year 2026.
The struggling German economy grew slightly faster than expected at the beginning of the year. However, the energy shock triggered by the Iran war could derail this growth momentum.
According to preliminary data from the German Federal Statistical Office (Destatis), Europe's largest economy's output grew by 0.3% in January to March this year compared to the previous quarter.
Analysts surveyed by financial data company FactSet predicted growth of 0.2%. In addition, the data only covers the first month after the US-Israel attack on Iran began at the end of February. (Compiler: Chen Yu-ting) 1150430
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(Central News Agency, Paris, April 30, comprehensive foreign reports) Affected by the Middle East war, European countries showed mixed economic performances in the first quarter. France experienced zero growth due to weak domestic demand and a significant negative contribution from foreign trade; Spain demonstrated resilient growth of 0.6%; Germany grew by 0.3%, slightly better than expected, but may be affected by energy shocks from the Iran conflict.
France's National Institute of Statistics and Economic Studies (INSEE) stated today that due to weak domestic demand and a significant negative contribution from foreign trade, the French economy showed zero growth in the first quarter of this year.
Agence France-Presse reported that preliminary estimates of first-quarter Gross Domestic Product (GDP) showed the impact of the Middle East war that erupted on February 28.
Just two weeks ago, the French central bank had estimated the country's economy to grow by up to 0.3% from January to March. INSEE had revised its forecast from 0.3% down to 0.2% at the end of March.
Official data released by Spain today showed strong economic performance, successfully resisting the turmoil caused by the Middle East war, with first-quarter economic growth of 0.6%, in line with market expectations.
Rising energy prices and inflation triggered by the conflict have raised concerns about the global economy, and the Bank of Spain warned last month that economic growth could experience a 'significant slowdown.'
Spain's National Institute of Statistics (INE) announced that economic growth performance from January to March was in line with the trend of an estimated 2.3% growth for the full year 2026.
The struggling German economy grew slightly faster than expected at the beginning of the year. However, the energy shock triggered by the Iran war could derail this growth momentum.
According to preliminary data from the German Federal Statistical Office (Destatis), Europe's largest economy's output grew by 0.3% in January to March this year compared to the previous quarter.
Analysts surveyed by financial data company FactSet predicted growth of 0.2%. In addition, the data only covers the first month after the US-Israel attack on Iran began at the end of February. (Compiler: Chen Yu-ting) 1150430
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The text, images, and audio-visual content on this website may not be reproduced, publicly broadcast, publicly transmitted, or utilized without authorization.