ECB says AI‑focused investment eases euro zone growth slowdown

The European Central Bank said that uncertainty stemming from wars and trade friction has cut euro‑zone economic growth by about 0.4 % between the first quarters of 2025 and 2026. However, a shift in business investment toward intangible assets, especially artificial intelligence, is helping to buffer the economy. Corporate surveys indicate that heightened AI spending this year is providing a stabilising effect, supporting a modest growth forecast of roughly 1 % for 2026.

The ECB noted that while households tend to postpone big‑ticket purchases such as cars during periods of uncertainty, their overall spending drag is relatively small and rebounds quickly once uncertainty eases. In contrast, spending on tangible assets remains more heavily hit and recovers more slowly.