So far this year, economic performance has weakened in several major eurozone economies.

On Friday, Eurostat released a preliminary report showing that gross domestic product (GDP) in the eurozone grew by 0.4 percent in the third quarter of 2026 compared with the previous quarter, slowing from 0.6 percent in the second quarter.

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GDP in the European Union (EU) increased by 0.5 percent quarter on quarter, down from 0.7 percent in the previous quarter. On a year-on-year basis, GDP growth edged up to 1.3 percent in the eurozone and 1.5 percent in the EU, compared with 1.2 percent and 1.4 percent, respectively, in the second quarter.

Eurostat cautioned that the preliminary estimates were based on incomplete data and remained subject to revision. Nevertheless, the eurozone economy stagnated in the first quarter before rebounding in the second. Economic performance weakened in several major eurozone economies.

Germany’s GDP increased by 0.2 percent quarter on quarter, down from 0.3 percent in the second quarter. France’s economy contracted by 0.1 percent after remaining unchanged in the previous quarter, while Italy’s GDP stagnated after growing by 0.2 percent.

Euro zone GDP grew 0.4% in Q3, double the 0.2% expected, per Reuters. Germany +0.2%, Spain +0.6%, Italy flat, France -0.1%. Resilience now, but surging energy costs and borrowing costs cloud the outlook. (via @Reuters) pic.twitter.com/EgK2RmCqL6

— The Macro Memo (@TheMacroMemo_) October 30, 2026

Spain recorded growth of 0.6 percent, compared with 0.7 percent in the second quarter. Elsewhere in the EU, Ireland recorded quarterly GDP growth of 5.5 percent, the highest among member states with available data, while Lithuania posted the sharpest contraction, at 1.0 percent.

The European Central Bank (ECB) kept its three key interest rates unchanged on Thursday, warning that continued increases in energy prices posed upside risks to inflation and downside risks to economic growth.

Bert Colijn, chief economist at ING, said that persistently rising energy prices, including natural gas prices, would pose additional challenges to eurozone growth during the winter months.

The relatively high level of interest rates and weakening business demand for loans would also weigh on economic activity, he noted, citing the ECB’s bank lending survey.

teleSUR/ JF

Source: Xinhua