Eurozone Q3 GDP Beats Forecasts at 0.4% Despite Sluggishness in Core Economies

Eurozone preliminary gross domestic product expanded 0.4% quarter-on-quarter in the third quarter of 2026, beating consensus projections of 0.2%. Annual GDP growth rose to 1.3%, also topping expectations of 1.1%. However, headline expansion moderated from 0.6% in the second quarter and reflected wide divergence across member states. Headline performance was heavily boosted by Ireland's 5.5% expansion, alongside 0.6% growth in Spain and the Netherlands. Meanwhile, core economies lagged, with Germany growing 0.2%, Italy stagnating at 0.0%, and France contracting 0.1%. Forecasters have since upgraded full-year 2026 Eurozone growth projections to above 1%.