FX.co ★ Euro Area GDP Annual Growth Beats Forecasts at 1.3%

The Euro Area economy experienced a 1.3% year-on-year expansion in the last quarter of 2025, reflecting its slowest growth rate in a year. However, this was only a slight decrease from the previous quarter's 1.4% and surpassed market predictions of 1.2%, as per preliminary figures. Among the member states with available data, Ireland led with robust growth at 6.7%, trailed by Spain at 2.6%, Lithuania at 2.5%, Portugal at 1.9%, and the Netherlands at 1.8%. France and Belgium each saw growth of 1.1%, with Estonia at 1.0%, Austria at 0.7%, Italy at 0.8%, and Germany at a modest 0.4%. Finland’s economy remained unchanged during this period. Overall, the GDP for the Euro Area increased by 1.5% across the entirety of 2025. Looking forward, both the European Central Bank and the European Commission anticipate economic growth rates of 1.2% in 2026 and 1.4% in 2027.