Eurozone GDP expands 0.4% in Q3, beats 0.2% estimates

The eurozone economy expanded by 0.4% in the third quarter, surpassing both expectations and the previous quarter's growth of 0.6%. Despite this robust performance, the growth figure was still impacted by the ongoing Middle East crisis and rising energy costs. Economist Bert Colijn of ING observed that the eurozone economy seemed to have remained resilient despite these challenges.

However, the growth was uneven across member countries. France, the eurozone's second-largest economy, experienced a contraction of 0.1% in the third quarter, deepening concerns about its public finances and political tensions. This performance, coupled with the first six months of 2026, means that France's economy has remained stagnant in terms of growth. France's bond yields surged to the highest levels since 2002 last week, reflecting the mounting concerns over its financial situation.

Germany, Europe's largest economy, outperformed expectations with a growth rate of 0.2% in the July to September period, following a 0.3% increase in the second quarter. Italy, on the other hand, recorded no economic growth in the third quarter, and Spain maintained its growth rate of 0.6% in the same period.