Eurostat data released Friday revealed that the single-currency bloc recorded a 0.4% expansion in the third quarter, representing a downshift from the 0.6% pace seen in the prior period. Even with this deceleration, the final figure exceeded the 0.2% growth rate anticipated by economists in a Reuters survey. The broader European trajectory was heavily dampened by France, which recorded an unexpected 0.1% contraction. French performance was hindered by domestic protests, elevated fiscal deficit worries, and higher borrowing costs.
Key points
Gross domestic product growth decelerated across the currency bloc despite beating initia…: Gross domestic product growth decelerated across the currency bloc despite beating initial market forecasts.
The French economy unexpectedly contracted by 0.1% as domestic unrest and fiscal concerns…: The French economy unexpectedly contracted by 0.1% as domestic unrest and fiscal concerns weighed on activity.
Rising bond yields and elevated government deficits continue to strain economic stability…: Rising bond yields and elevated government deficits continue to strain economic stability in France.
Sources checked by our analysis pipeline: 1
Man holds Euro banknotes in this illustration taken Oct. 29, 2026.
Dado Ruvic | Reuters
Economic expansion in the euro zone slowed to 0.4% in the third quarter from 0.6% in the previous three months, statistics agency Eurostat said on Friday.
That was nonetheless higher than the 0.2% growth forecast in a Reuters poll of economists.
However, France's economy unexpectedly contracted by 0.1% as the country grapples with nationwide unrest and a struggle to tame rising bond yields as investors balk at its high deficit.
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