Euro Area Economy Posts Slower-Than-Expected Growth

2026-03-07 04:20:13

(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.

MENAFN07032026000045017169ID1110830439

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.