The Euro Area economy expanded by 0.2% in Q4 2025, undershooting the earlier estimate of 0.3% and easing from 0.3% in Q3. The figures point to only modest momentum, even as inflation cooled, interest rates declined, and the bloc showed resilience in the face of US trade tariffs on EU imports. Household consumption increased by 0.4%, up from 0.2% in the previous quarter, while growth in fixed investment slowed to 0.6% from 1.3%, and public spending growth eased to 0.5% from 0.7%. Changes in inventories and net trade each shaved 0.1 percentage points from quarterly GDP growth.
Among the major economies, Spain led with quarterly growth of 0.8%, supported by robust household consumption and investment, followed by the Netherlands at 0.5%. Germany and Italy both recorded growth of 0.3%, while France trailed at 0.2%. On an annual basis, Eurozone GDP grew 1.2% in Q4, slightly below the 1.3% preliminary estimate and down from 1.4% in Q3. For the full year 2025, growth came in at 1.4%, just under the earlier 1.5% estimate but an acceleration from 0.9% in 2024.
