BRUSSELS, Belgium / EuroWire.IO / – The euro area economy grew by 0.4% in the third quarter of 2026 compared with the previous quarter, according to a preliminary flash estimate from Eurostat. GDP in the wider European Union rose by 0.5% over the same period. Both figures are seasonally adjusted. Growth slowed from the second quarter, when GDP increased by 0.6% in the euro area and by 0.7% in the EU. Eurostat published the data on October 30.
Compared with the same quarter of 2025, seasonally adjusted GDP rose by 1.3% in the euro area and by 1.5% in the EU. Annual growth picked up slightly from the second quarter, when it stood at 1.2% and 1.4% respectively. The flash estimate is based on data from 19 member states. These cover 96% of euro area GDP and 94% of EU GDP, Eurostat said. Figures for earlier quarters were not revised with this release.
Ireland recorded the highest quarterly increase among member states with available data, at 5.5%. Eurostat said the Irish estimate was experimental and based on incomplete data sources, so it could be revised. Irish GDP had risen by 10.2% in the second quarter. Estonia, Spain and the Netherlands followed, each with growth of 0.6%. Czechia and Finland grew by 0.5%, while Sweden expanded by 0.4%. Belgium recorded growth of 0.3%.
France and Lithuania record declines
Two member states recorded quarterly declines. Lithuania’s economy shrank by 1.0%, after growth of 1.4% in the second quarter. French GDP fell by 0.1%, following flat output in the previous three months. France was also the only country with a negative annual growth rate, at minus 0.1%. Annual growth was positive in 14 of the 15 countries in the Eurostat table. Spain posted annual growth of 2.7% and Sweden 2.8%.
Germany, the largest economy in the euro area, grew by 0.2% in the third quarter, slightly slower than the 0.3% recorded in the second quarter. Its annual growth rate rose to 1.2%. Italian GDP was unchanged from the previous quarter, after growth of 0.2% in the three months to June. Austria and Portugal each expanded by 0.2%, while Hungary grew by 0.1%. The IMF had forecast euro area growth of 0.9% for 2026 as a whole.
Further estimates due in November
The figures come as the European Central Bank tightens monetary policy to curb inflation. The ECB raised its three key interest rates by 25 basis points in September, taking the deposit facility rate to 2.50%. The new rates took effect on September 16. It was the bank’s second rate increase this year, after a hike in June. Higher borrowing costs can weigh on investment and household spending across the currency bloc.
Eurostat said all figures were preliminary and based on incomplete data. They may be revised with the next flash estimate, scheduled for November 13. Regular GDP estimates for the third quarter are due on December 7 and January 19, 2027. Eurostat also publishes employment data about 45 days after the end of each quarter. The euro area has 21 members following Bulgaria’s adoption of the euro in January 2026.