"The Eurozone economy recorded small but positive growth of 0.2% in GDP during the third quarter of 2025, a slight improvement on the 0.1% expansion seen in the second quarter. On an annual basis, output grew by 1.3% signalling that while momentum remains weak, the economy of the Eurozone continues to edge forward rather than slip into contraction. This modest improvement points to an economy still walking a fine line between recovery and stagnation."
"Consumer demand strengthened slightly as inflation cooled and wages inched higher, providing some relief for households. The services sector held steady, but manufacturing and exports continued to underperform, weighed down by subdued global demand and lingering cost pressures. Governments across the bloc are likely to face growing calls to use targeted fiscal measures to stimulate investment and productivity, especially in energy transition, digital infrastructure, and workforce skills."
"The Eurozone is managing to grow, but very slowly. The bloc's economic performance is not being helped by Germany and France, the two largest economies in the Eurozone, as they continue to vie for the unenviable title of 'the sick man of Europe'. While Germany is showing signs of slow recovery following a 0.5% contraction in the economy in 2024, France remains dogged by economic instability."
The Eurozone expanded 0.2% in Q3 2025, up from 0.1% in Q2, with annual output rising 1.3%, reflecting weak but positive momentum. Consumer demand strengthened slightly as inflation cooled and wages inched higher, easing some household pressure. The services sector remained steady while manufacturing and exports underperformed due to subdued global demand and lingering cost pressures. Governments face pressure to deploy targeted fiscal measures to boost investment and productivity, particularly for energy transition, digital infrastructure, and workforce skills. Persistent structural problems—weak productivity, labour-market rigidities, and uneven competitiveness—alongside elevated debt ratios and rising borrowing costs constrain stronger, sustainable growth.
Read at London Business News | Londonlovesbusiness.com
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