Euro Area GDP Annual Growth Rate Strongest in Over a Year

The GDP in the Eurozone expanded 1.3% year-on-year in Q3 2026, the most in over a year, following a 1.2% rise in Q2 and compared to forecasts of 1.1%, preliminary estimates showed. Faster increases were seen in Germany (1.2% vs 1%), Spain (2.7% vs 2.6%), Netherlands (2.1% vs 1.6%), Finland (1.8% vs 1.4%) and Estonia (2.2% vs 1.8%) and a rebound was recorded in Ireland (3.6% vs -0.4%). In contrast, a contraction was seen in France (-0.1% vs 0.5%) while growth rates slowed in Italy (0.8% vs 1%), Portugal (2.4% vs 2.6%), Austria (0.6% vs 0.8%) and Lithuania (2.3% vs 3.9%). The Belgium economy expanded 0.7%, the same as in Q2.

The Euro Area economy expanded 1.2% year-on-year in Q2 2026, up from 1% in the previous estimate and twice the 0.6% growth recorded in Q1 2026. The acceleration was driven by stronger growth in household expenditure (1.2% vs. 1.0%) and gross fixed capital formation (1.4% vs. 0.3%), while exports also rebounded sharply (3.9% vs. -0.1%). Imports increased at a faster pace as well, rising 3.6% compared with 1.9% previously. Meanwhile, growth in government spending slowed to 1.9% from 2.3%. Among the bloc's largest economies, GDP growth accelerated in Germany (1.0% vs. 0.7%) and Italy (1.0% vs. 0.8%), while it slowed in France (0.5% vs. 0.7%) and remained unchanged in Spain (2.7% vs. 2.7%).

The Eurozone economy grew 1.0% year-on-year in the second quarter of 2026, accelerating from an upwardly revised 0.5% in the previous quarter, according to second estimates. Strong AI-related investment, resilient government spending, and one-off factors helped offset the impact of the conflict in Iran and higher energy prices. Among the largest euro area economies, Spain remained the standout performer, with annual GDP growth of 2.7%, followed by the Netherlands (1.3%), Italy (1.0%), Germany (0.9%), and France (0.7%). On a quarterly basis, the Eurozone economy expanded 0.4%, its strongest pace since the first quarter of 2025.