Eurozone sees 0.2% growth in fourth quarter of 2025

Slowing European Growth

According to Eurostat, the gross domestic product of the eurozone increased by 0.2% in the fourth quarter of 2025 compared to the third quarter, following a 0.3% rise in the previous quarter. The European Union showed the same 0.2% growth, after a 0.4% increase in the third quarter. For the entire year of 2025, GDP grew by 1.4% in the eurozone and 1.5% in the EU, following respective growth rates of 0.9% and 1.1% in 2024. Year-on-year, the growth stands at 1.2% for the eurozone and 1.4% for the EU in the fourth quarter of 2025. By comparison, the United States recorded a 0.4% increase in the fourth quarter of 2025 over the previous quarter, with an annual growth of 2.2%.

Significant Disparities Among Member States

Economic performance varies significantly among EU countries in the fourth quarter of 2025, according to Eurostat. Malta shows the highest quarterly growth at 2.1%, followed by Lithuania at 1.7%, and both Croatia and Cyprus at 1.4% each. Conversely, Ireland experiences a contraction of 3.8%, Romania by 1.9%, while Estonia and Luxembourg decrease by 0.1%. In terms of employment, Ireland and Malta record the highest quarterly increases at 1.3% each, followed by Spain and Cyprus at 0.8%. The largest declines are noted in Lithuania with a decrease of 2.3%, Estonia with a decrease of 1.8%, and Germany with a decrease of 0.1%.

Increase in Consumption and Investment

According to Eurostat, household final consumption expenditure increased by 0.4% in the euro area and by 0.5% in the EU in the fourth quarter of 2025 compared to the previous quarter. Public consumption expenditure rose by 0.5% in the euro area and by 0.7% in the EU. Gross fixed capital formation grew by 0.6% in both regions. Conversely, exports fell by 0.4% in the euro area and by 0.3% in the EU, while imports decreased by 0.2% in the euro area and remained stable in the EU. In total, 221.1 million people were employed in the EU in the fourth quarter of 2025, with 172.6 million of them in the euro area. Labor productivity per person increased by 0.6% in the euro area and by 0.8% in the EU on a year-on-year basis.