FX.co ★ Eurozone GDP Beats Expectations

In the third quarter of 2025, the Eurozone's economy saw a quarter-on-quarter growth of 0.2%, an increase from the previous quarter's 0.1% and slightly surpassing market forecasts of 0.1%, as per a preliminary estimate. France's economy grew by 0.5%, outperforming predictions of 0.2%, primarily due to a significant increase in exports. Spain maintained its position as the top performer among the major Eurozone economies, with a 0.6% expansion, as anticipated, buoyed by robust household consumption and fixed investment. In contrast, Germany's economy experienced stagnation, attributed to a drop in exports, while Italy's economic activity remained flat, with a contraction in the industrial sector and no growth in services. On a year-over-year basis, the Eurozone's GDP increased by 1.3%, exceeding expectations of 1.2%. These better-than-expected results alleviate some of the pressure on the European Central Bank to lower interest rates in the short term, reinforcing the perception that the economy is holding steady despite geopolitical tensions and uncertainties in trade policy.