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Euro Area Economy Posts Slower-Than-Expected Growth

(MENAFN) The euro area economy expanded at a slower-than-expected pace in the final quarter of last year, with Eurostat data released Friday revealing 0.2% growth — falling short of the 0.3% preliminary estimate and decelerating from the 0.3% expansion recorded in the third quarter.

Gross domestic product across the broader European Union mirrored the underwhelming performance, also registering 0.2% growth over the same October-to-December period.

Performance varied sharply across member states. Malta led the bloc with the strongest quarterly expansion, posting GDP growth of 2.1%, followed closely by Lithuania at 1.7% and Croatia at 1.4%.

At the other end of the spectrum, Ireland suffered the steepest contraction of the period, with its economy shrinking 3.8% — the sharpest decline among all member states. Romania followed with a 1.9% contraction over the same quarter.

Despite the soft finish to the year, full-year figures offered modest reassurance. The euro area's economy grew 1.4% across 2025 compared to 2024, while the broader EU posted a slightly stronger annual expansion of 1.5%.

The eurozone comprises the 21 EU member states that have adopted the euro as their official currency.

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