Eurozone growth gathered modest momentum in the third quarter of 2025, with GDP rising 0.3 percent quarter-over-quarter, up from 0.1 percent previously. The annual rate eased slightly to 1.4 percent, suggesting stable but cautious expansion. The composition of growth paints a picture of an economy supported by domestic resilience while facing external pressures. Household spending grew gently, contributing a small 0.1 percentage point, hinting at steady but restrained consumer confidence. Government consumption offered a stronger push, reflecting continued public-sector support.

The standout performer was investment: after a sharp contraction in the previous quarter, gross fixed capital formation rebounded by 0.9 percent, adding 0.2 percentage points to growth and signalling renewed business confidence and project restarts. Trade dynamics, however, exerted a drag. Although exports improved, the sharper rise in imports meant that net trade subtracted 0.2 percentage points, reflecting strong internal demand and persistent global uncertainties.

Overall, the latest data depict an economy leaning on domestic demand and revitalised investment to sustain momentum, even as external conditions weigh on its trajectory. These updates take the RPI to minus 15 and the RPI-P to minus 5, meaning that economic activity adjusted for prices are within the expectations of the bloc.

No revision expected from 0.2 percent on quarter and 1.4 percent on year for Q3.

Gross domestic product (GDP) is the broadest measure of aggregate economic activity and encompasses every sector of the economy and is usually released early in the third month after the reference period. Following two provisional (flash) estimates containing only limited information, this report provides the first full look at the national accounts for the region.

GDP is the all-inclusive measure of economic activity. Investors need to closely track the economy because it usually dictates how investments will perform. Stock market Investors like to see healthy economic growth because robust business activity translates to higher corporate profits. The GDP report contains a treasure-trove of information which not only paints an image of the overall economy, but tells investors about important trends within the big picture. These data, which follow the international classification system (SNA93), are readily comparable to other industrialized countries. GDP components such as consumer spending, business and residential investment, and price (inflation) indexes illuminate the economy's undercurrents, which can translate to investment opportunities and guidance in managing a portfolio.

Each financial market reacts differently to GDP data because of their focus. For example, equity market participants cheer healthy economic growth because it improves the corporate profit outlook while weak growth generally means anemic earnings. Equities generally drop on disappointing growth and climb on good growth prospects.

Bond or fixed income markets are contrarians. They prefer weak growth so that there is less of a chance of higher central bank interest rates and inflation. When GDP growth is poor or negative it indicates anemic or negative economic activity. Bond prices will rise and interest rates will fall. When growth is positive and good, interest rates will be higher and bond prices lower.

Currency traders prefer healthy growth and higher interest rates. Both typically lead to increased demand for a local currency. However, inflationary pressures can put downside pressure on a currency regardless of growth. For example, if inflation remains above the ECB’s near-2 percent target for long enough, worries about the impact of lost competitiveness on the merchandise trade balance could prompt investors to switch to an alternative currency.