BRUSSELS, Belgium / EuroWire.IO / – The European Union economy expanded by 0.5% in the third quarter of 2026, while the euro area grew by 0.4%, Eurostat’s preliminary flash estimate showed. The quarterly rates are seasonally adjusted and compare with the previous three months. Growth eased from the second quarter, when EU GDP rose by 0.7% and euro area GDP by 0.6%. The EU statistical office released the figures on October 30.
On an annual basis, EU GDP grew by 1.5% in the third quarter, while the euro area recorded growth of 1.3%. Both rates were slightly higher than in the second quarter, at 1.4% and 1.2% respectively. The estimate draws on data from 19 member states, representing 94% of EU GDP and 96% of euro area GDP. Eurostat said data for earlier quarters were left unchanged in this release.
Among countries with third-quarter data, Ireland posted the strongest quarterly growth at 5.5%. Eurostat described the Irish figure as experimental, noting that it relies on incomplete sources and is subject to revision. Irish GDP had grown by 10.2% in the second quarter. Estonia, Spain and the Netherlands each grew by 0.6%. Czechia and Finland both expanded by 0.5%, and Sweden by 0.4%. Belgium grew by 0.3%, while Austria and Portugal both recorded growth of 0.2%.
Germany grows as Italy stalls
Germany’s economy expanded by 0.2% in the third quarter, compared with 0.3% in the second quarter. Annual growth in Germany reached 1.2%. Italy’s GDP was flat on the quarter, after rising by 0.2% in the previous three months. Its annual growth rate slowed to 0.8%. The Bank of Italy had forecast growth of about 1% for the Italian economy in 2026. Hungary’s economy grew by 0.1% in the third quarter.
Two countries saw their economies contract. Lithuania’s GDP fell by 1.0% after a 1.4% rise in the second quarter. France recorded a decline of 0.1%, having posted no growth in the previous quarter. Lithuania’s annual growth remained positive at 2.3%. France was the only country with negative annual growth, at minus 0.1%. The annual rate was positive in the other 14 countries in the table. Spain’s annual growth reached 2.7%, while Portugal recorded 2.4%.
ECB rate rises shape the outlook
The European Central Bank raised its key interest rates by 25 basis points in September, its second increase of the year after a hike in June. The move lifted the deposit facility rate to 2.50% from September 16. The ECB has been tightening policy in response to inflation pressures in the currency bloc. The latest GDP data show the euro area economy continued to grow despite higher borrowing costs.
Eurostat said the flash figures were preliminary and could be revised. The next estimate for the third quarter is due on November 13, followed by regular estimates on December 7 and January 19, 2027. Employment data are usually published about 45 days after the quarter ends. The euro area has 21 member countries after Bulgaria adopted the euro in January 2026. The EU has 27 member states.