Eurozone growth beats forecasts, economy gains momentum in 2025

The Eurozone economy grew by a stronger-than-expected 1.5 per cent in 2025.
Eurozone growth beats forecasts, economy gains momentum in 2025
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BRUSSELS : The growth figure follows a modest 0.4 per cent expansion in 2023 and 0.9 per cent growth in 2024, signalling a clear rebound in economic activity across countries using the single currency.

Eurostat said the latest estimates reflect more dynamic economic conditions toward the end of the year, surpassing economists’ average growth expectation of 1.4 per cent and exceeding the 1.3 per cent forecast by the European Commission.

In quarterly terms, the Eurozone’s gross domestic product rose by 0.3 per cent in the fourth quarter of 2025 compared to the previous quarter, and by 1.3 per cent year-on-year, underscoring improving momentum across the bloc.

Growth was slightly stronger when looking at the broader European Union, which recorded 1.6 per cent expansion in 2025. The EU also posted solid fourth-quarter performance, with GDP increasing 0.4 per cent quarter-on-quarter and 1.4 per cent compared to the same period in 2024.

Summary

The Eurozone's economy outperformed expectations in 2025, with a 1.4% growth rate, surpassing both economists' and the European Commission's forecasts. This marks a significant rebound from previous years, highlighting improved economic momentum across the bloc. The broader EU also showed robust growth, with a 1.6% expansion, indicating a strong economic recovery.

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