Eurozone rebounds from recession as inflation steadies

The eurozone economy rebounded in the first quarter from a mild recession as Germany returned to growth and expansion accelerated elsewhere, while inflation steadied to reinforce the case for the European Central Bank to cut interest rates.

The fourth quarter GDP figure was also revised down to a negative 0.1% from a previous 0.0%, meaning that the eurozone was in a technical recession in the second half of 2023. GDP shrank by 0.1% in the third quarter.

The figures reflect general expectations of a slow recovery in the eurozone. The IMF forecast earlier this month that the bloc's GDP would rise by 0.8% this year, double the rate of 2023, and by a healthier 1.5% in 2025.

Eurozone inflation steadied at 2.4% in April, data showed. However, a crucial indicator of underlying price pressures slowed, solidifying the case for the European Central Bank to cut interest...