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European economies started the year with weak and uneven growth, with the Eurozone recording a quarterly growth of 0.1% and the European Union 0.2%. The impact of the US-Israeli war on Iran and the energy shock led to higher inflation and a shake-up of economic confidence. Despite the sluggish growth, the labor market remained relatively resilient, with employment increasing by 0.1% in the first quarter in both the Eurozone and the EU, and an annual rise of 0.5% and 0.6%, respectively. Countries such as Britain and Spain experienced positive growth, while France saw a decline in gross domestic product.
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