Brussels
The euro zone economy expanded by 0.2% in the third quarter, surpassing economist expectations of 0.1%, Eurostat flash data revealed Thursday. Buoyant consumer spending cushioned faltering exports and Germany’s industrial woes, with France leading the charge at a robust 0.5% growth—more than double the forecasted 0.2%—its strongest in over two years despite political gridlock.
Spain added momentum with 0.6% growth and Portugal topped at 0.8%, fueled by tourism and domestic demand. Germany, however, stagnated at 0%, underscoring the bloc’s uneven recovery amid U.S. tariffs and ECB rate cut debates.
Year-on-year, GDP rose 1.3%, aligning with the ECB’s upgraded 1.2% full-year outlook. Analysts caution the uptick masks risks from France’s budget battles and Germany’s stimulus lags, but positive PMIs signal sustained domestic resilience. On X, economists hailed it as a ‘timely boost’ for ECB policy.