According to the preliminary report from Eurostat, in the 3rd quarter, the eurozone economy expanded by 0.4% (the strongest growth in two years) after growing by 0.2% in the 2nd quarter. Economists had expected GDP to grow by 0.2%. As for the European Union countries, GDP increased by 0.3%, as in the previous quarter.
In annual terms, the growth of the eurozone economy accelerated to 0.9% from 0.6% in the 2nd quarter, while consensus estimates suggested that GDP would grow by 0.8%. Meanwhile, the GDP of the European Union countries grew by 0.9% after an increase of 0.8% in the 2nd quarter.
Eurostat said that among EU countries, Ireland (+2.0%) recorded the highest increase compared to the previous quarter, followed by Lithuania (+1.1%) and Spain (+0.8%). Declines were recorded in Hungary (-0.7%), Latvia (-0.4%) and Sweden (-0.1%). The year on year growth rates were positive for seven countries and negative for six.
The latest survey of professional forecasters (SPF) showed that respondents continued to expect a strengthening of real GDP growth from a modest 0.7% in 2024, to 1.2% in 2025 and 1.4% in 2026. These figures were unchanged apart from 0.1% downward revision for 2025, which mainly reflected a carry-over from weaker than previously expected economic activity in the second half of 2024. Longer-term GDP growth expectations were unchanged at 1.3%.