European Central Bank Vice President Luis de Guindos said on Monday that incoming data point to modest growth in the first quarter of 2025. Speaking before the European Parliament during the ECB's 2024 Annual Report presentation, he noted that economic activity in the euro area had started to recover last year.

However, he warned that risks have grown due to trade disruptions, financial tensions, and geopolitical uncertainty, which could affect business investment and consumer spending. He also highlighted that inflation continued to fall towards the ECB's 2% target in 2024 and is expected to stay close to it, although global trade disruptions could affect future inflation trends.

"Euro area exporters are now facing new barriers, and tensions in financial markets and geopolitical uncertainty will likely weigh on business investment. In this environment, consumers may become cautious about the future and hold back spending," he said.