EU Economy Sees Moderate Rebound in Q3 with Diverging Internal Growth Trends

October 30, 2025 - Preliminary data from Eurostat showed the EU's Gross Domestic Product (GDP) grew by 0.3% quarter-on-quarter in the third quarter of 2025, while the eurozone economy expanded by 0.2%, marking an acceleration from the second quarter. Year-on-year, GDP rose by 1.3% in the eurozone and 1.5% in the wider EU, slightly down from the previous quarter. The figures point to a moderate recovery in economic activity across the region, albeit with significant divergence among member states. Sweden led with 1.1% quarterly growth, followed by Portugal (0.8%) and the Czech Republic (0.7%), whereas Lithuania contracted by 0.2%, and Ireland and Finland saw slight declines of 0.1%.

Among the largest economies, Germany and Italy registered stagnant output, while France grew by 0.5%, Spain by 0.6%, and the Netherlands by 0.4%. The uptick occurred despite challenges from high energy prices and US protectionism, largely offset by pledged increases in military spending and the delayed impact of interest rate cuts by the European Central Bank.