Euro zone grows faster than expected as France shrinks

The 21-country euro zone grew 0.4 per cent in the third quarter, twice the 0.2 per cent economists expected. Ireland's 5.5 per cent growth lifted the total, and without it the figure stays at 0.2 per cent.

Growth in the third quarter

• Spain: +0.6 per cent
• Germany: +0.2 per cent
• Italy: no growth
• France: -0.1 per cent

Third-quarter growth was uneven across the largest economies.

France's economy has not grown at all in 2026, and its 10-year borrowing cost is near 5 per cent as a government without a stable majority works on the 2027 budget. Euro zone inflation reached 3.8 per cent in September, a three-year high, and economists warn of stagflation risks.