EU economy grows 0.3% in fourth quarter

SelfRugger · 2026-03-16T14:05:17+00:00

The EU and eurozone economies grew by 0.3% in Q4 2025, with annual growth at 1.5% and 1.6%, respectively. Ireland and Cyprus had the highest growth rates. Unemployment decreased as employment rose. However, uncertainties remain due to potential US tariffs.

SelfRugger

2026-03-16 14:05:17

Abstract generation in progress

EU economy grows 0.3% in fourth quarter

Lucy Harley-McKeown

Updated Fri 13 February 2026 at 8:32 pm GMT+9 2 min read

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Both the EU and eurozone economies grew 0.3% in the fourth quarter of 2025, according to the latest flash estimate, with annual growth for 2025 hitting 1.5% in the euro area and by 1.6% in the EU. Both figures met economists’ expectations.

On a country-by-country basis, the economies of Ireland and Cyprus grew the most year-on-year, seeing 6.7% and 4.5% increases respectively.

The latest release also showed unemployment ticked lower. The number of employed persons increased by 0.2% in both the euro area and the EU in the fourth quarter of 2025, compared with the previous quarter, according to Eurostat.

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In the third quarter of 2025, employment had increased by 0.2% in the euro area and by 0.1% in the EU.

According to an estimation of annual growth for 2025, based on quarterly data, employment increased by 0.7% in the euro area and by 0.5% in the EU.

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The figures signal resilience for the economic bloc, where 350 million people live, although questions still remain about how threats from US president Donald Trump of ever escalating tariffs will continue to play out.

Trade balance figures released on Friday for the eurozone area showed a €12.6bn (£11bn) surplus in trade in goods with the rest of the world in December 2025, compared with €13.9 bn in December 2024.

Euro area exports of goods to the rest of the world in December 2025 were €234bn, an increase of 3.4% compared with December 2024 (€226.3bn).

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.

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