Eurozone GDP growth accelerates more than expected

(Sharecast News) - The eurozone economy grew at its fastest annual pace in more than a year during the third quarter, according to preliminary figures released by Eurostat on Friday.

Gross domestic product (GDP) increased by 1.3% year-on-year in the three months to September, accelerating from 1.2% in the second quarter and exceeding consensus forecasts of 1.1%.

The reading marked the strongest annual expansion since the second quarter of 2025.

On a quarterly basis, GDP rose 0.4%, slowing from 0.6% growth in the preceding three months but still ahead of analysts' forecasts.

Among eurozone economies, Ireland recorded the strongest quarterly growth at 5.5%, followed by Estonia, Spain and the Netherlands, which all grew by 0.6%.

However, Lithuania suffered the sharpest contraction, with GDP falling 1%, while France's economy shrank by 0.1%. Italy's economy stagnated during the period.

Germany, the eurozone's largest economy, expanded by 0.2% quarter-on-quarter, according to separate figures from Destatis, slowing from 0.3% growth in the second quarter. On an annual basis, German GDP rose 1.2% after adjusting for price and calendar effects, accelerating from 1% in the preceding quarter.

Destatis said household consumption increased slightly during the third quarter, although investment declined and export growth slowed noticeably compared with the first half of the year.

Meanwhile, Spain was among the strongest performers on an annual basis, with GDP rising 2.7%, followed by Portugal at 2.4% and Lithuania at 2.3%. Ireland's economy grew 3.6% year-on-year, although Eurostat cautioned that its preliminary estimates were experimental and subject to revision.

France was the weakest performer on an annual basis, with GDP contracting 0.1%, while Austria and Belgium recorded growth of just 0.6% and 0.7%, respectively.

Revisions to third-quarter eurozone GDP estimates will be published in two weeks, followed by a more comprehensive release in early December.