Eurozone GDP firmer than expected at end of 2025
By Josh White
Date: Friday 30 Jan 2026
(Sharecast News) - The eurozone economy ended 2025 on a firmer footing than expected, with preliminary data showing gross domestic product rising by 0.3% quarter-on-quarter in the final three months of the year, beating forecasts for a 0.2% expansion.
Growth in the wider European Union matched that pace, underscoring a picture of modest but resilient momentum despite persistent structural and policy challenges.
On an annual basis, GDP increased by 1.3% year-on-year in the euro area and 1.4% across the EU, easing slightly from the previous quarter but remaining consistent with a slow, uneven recovery.
Estimates based on quarterly data pointed to full-year growth of around 1.5% in the eurozone in 2025, a performance that defied earlier fears of stagnation.
Country-level data showed a broadly constructive backdrop. Spain and Portugal posted solid quarterly growth of 0.8%, while Lithuania led reported gains with a 1.7% expansion.
Ireland was the only member state to record a contraction, shrinking 0.6% over the quarter.
Germany's economy was estimated to have grown 0.3%, avoiding a deeper manufacturing-led downturn, while France saw growth slow toward the end of the year.
Labour market conditions also improved, with the euro area unemployment rate falling to 6.2% in December, reinforcing signs of underlying resilience.
In Spain, inflation eased to 2.4% in January, offering some relief on the price front even as activity remained robust.
The stronger-than-expected growth data was likely to reassure policymakers at the European Central Bank that the economy is holding up as inflation remains their primary concern.
Reporting by Josh White for Sharecast.com.
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