Euro zone GDP Q3 2025
Pedestrians wear protective face masks as they walk past shops and cafes on Rue Montorgueil in Paris, France, on Wednesday, August 26, 2020.
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According to data released by Eurostat on Thursday, the euro zone economy grew by 0.2% in the third quarter, above expectations.
Economists polled by Reuters had forecast the bloc’s economy would grow by 0.1% between July and September.
The eurozone economy grew by 0.1% in the second quarter, following 0.6% growth in the first quarter.
The data comes ahead of the European Central Bank’s next monetary policy decision later on Thursday.
While the central bank last cut interest rates in June, it is expected to keep the main deposit interest rate at 2% at the meeting. The cut comes as the euro zone’s annual inflation rate reached the European Central Bank’s target of 2%; but since then the rate of price increase has increased to 2.2% in September.
Economists say that despite the weak growth outlook, the central bank is unlikely to cut interest rates for a while.
“The ECB’s rate-cutting cycle appears to be over, at least for now, with stronger business activity and rising inflation leaving little doubt that the Governing Council will have it in its hands for some time to come,” Matthew Ryan, head of financial services firm Ebury Market Strategy, said in emailed comments.
