FX.co ★ Eurozone Economy Holds Steady in Q4

In the final quarter of 2025, the Eurozone economy experienced a growth rate of 0.3% compared to the previous quarter. This rate matches the growth observed in the third quarter and slightly exceeds market predictions of 0.2%, as reported in a preliminary estimate. Within the largest economies of the bloc, Spain showed notable performance, achieving its most robust quarterly growth in a year and surpassing predictions of 0.6%. This growth was buoyed by strong household consumption and fixed investment. The Netherlands reported a 0.5% expansion, largely fueled by export activities. Both Germany and Italy experienced growth of 0.3%, exceeding forecasts, whereas France expanded by 0.2%, aligning with expectations, but reflecting its slowest quarterly growth since the first quarter of 2025. Annually, the GDP of the Eurozone increased by 1.3%, which was slightly higher than anticipated at 1.2%. Over the entirety of 2025, the Eurozone economy advanced by 1.5%, an improvement from 0.9% in 2024, and surpassing the European Commission’s forecast of 1.3%. Moving forward, both the European Commission and the European Central Bank anticipate a moderation in growth to 1.2% in 2026 due to geopolitical tensions and uncertainties in trade policies, with a slight rebound projected to 1.4% in 2027.