The euro area economy expanded by 1.2% year-on-year in the fourth quarter of 2025, revised down from the initial estimate of 1.3%. This represents the slowest annual pace of growth in more than a year, decelerating from 1.4% in the previous quarter.
All major expenditure components grew more slowly than before: household consumption rose by 1.3% (down from 1.4%), government spending by 1.4% (from 1.5%), gross fixed capital formation by 3.1% (from 3.3%), exports by 2.4% (from 2.9%), and imports by 3.9% (from 4.2%).
In terms of contributions to GDP growth, exports provided the largest positive impact at 1.2 percentage points, followed by household consumption and investment, each contributing 0.7 percentage points.
Across member states, Malta recorded the strongest growth rate at 6.4%, followed by Cyprus at 4.5%. Among the larger economies, Germany grew by 0.4%, France by 1.2%, Italy by 0.8%, and Spain by 2.6%.
For 2025 as a whole, euro area GDP increased by 1.4%, slightly below the earlier estimate of 1.5%. Looking ahead, both the European Central Bank and the European Commission project economic growth of 1.2% in 2026 and 1.4% in 2027.
