Euro zone grows 0.4% in third quarter, beating forecasts, as France contracts

The euro area economy grew 0.4% quarter on quarter in July–September, according to a preliminary flash estimate published by Eurostat on Friday. Growth slowed from 0.6% in the second quarter but beat the 0.2% expected in a Reuters poll of economists. The wider EU grew 0.5%.

Year on year

Compared with the third quarter of 2025, euro zone GDP rose 1.3% (forecast: 1.1%) and EU GDP 1.5%.

Country by country

• Germany +0.2%, Spain and the Netherlands +0.6% each, Italy flat.
• France contracted 0.1%, and Lithuania fell 1.0%.
• Ireland jumped 5.5%, which Reuters notes is large enough to lift the euro zone figure meaningfully; Irish GDP is volatile because of large multinationals based there.

Context

Reuters writes that the bloc has proved more resilient than feared after the start of the Iran war earlier this year pushed up energy prices, with spending on AI, defence and infrastructure supporting investment and households continuing to spend. Eurostat stresses that the flash estimates rely on incomplete data; the next estimate is due on 13 November.