Eurozone economy expands 0.3% in final quarter of 2025, above expectations

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Eurozone GDP growth outstripped expectations in the final quarter of last year, with expansion of 0.3% compared with consensus expectations of a 0.2% rise.

The data showed the economy expanded 1.3% compared with a year earlier, versus economists’ expectations of 1.2%.

The figures signal resilience for the economic bloc, where 350 million people live, which has been rocked by threats from US president Donald Trump of ever escalating tariffs.

In August, a new EU-US trade agreement established a 15% ceiling on most EU goods exported to the US, covering sectors like cars, semiconductors and pharmaceuticals. Trump has also since threatened to levy further tariffs on the region.

Figures released on Friday also showed a slight monthly decrease in unemployment for the euro area. The number of jobless people dipped from 6.3% to 6.2% in December.

Spain and Portugal were among the top performing economies in Europe at the end of last year, according to the flash reading. They both saw their economies expand by 0.8% last quarter – more than double the eurozone’s average growth rate. Spain’s economy grew by 2.8% in 2025.

The country-by country readings show growth is uneven across the eurozone, with France’s economy posting no growth, as political drama wreaked uncertainty at the end of last year.

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