The eurozone economy expanded by 0.4% in the third quarter of 2026, outperforming forecasts even as the energy shock linked to the Iran war continued to cloud the outlook. Eurostat’s preliminary estimate, released on Friday, put growth above the 0.2% expected by economists, but below the 0.6% recorded in the previous quarter.
Compared with the same period a year earlier, gross domestic product across the 21-country currency bloc rose 1.3%. The European Union as a whole grew 0.5% quarter on quarter and 1.5% year on year. The figures are preliminary and may be revised as more complete national data become available.
Performance varied across major economies. Germany grew 0.2%, while Spain and the Netherlands each expanded by 0.6%. France contracted by 0.1% and Italy’s economy was unchanged. Ireland recorded the strongest quarterly increase, at 5.5%, although its figures are often affected by the activities of multinational companies.
Despite the stronger-than-expected headline figure, economists warn that elevated energy costs and higher borrowing expenses could weigh on demand in the coming months. Inflation has accelerated again, complicating the European Central Bank’s task as it weighs price stability against a still modest pace of growth.
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