GDP up by 0.3% and employment up by 0.2% in the euro area – Euro indicators
The Economic Pulse — a weekly data-led briefing explaining what the latest economic numbers mean in real life.
Sections:
State of the economy |
Growth, income and spending |
Saving and investment |
National differences |
What changed |
What to watch |
What this means for you
As we conclude another week, the economic landscape appears to be moving steadily forward, with key indicators suggesting consistent growth within the euro area and the EU. This momentum, reflecting ongoing resilience among member states, underscores a collective commitment to shaping a robust economic environment amidst various global challenges.
The state of the economy this week
This week’s economic signals indicate modest growth in both the euro area and the EU, with GDP rising by 0.3% in the fourth quarter of 2025, reflecting stability after similar increases in the previous quarter. Employment trends also show consistent, albeit modest, gains, suggesting a resilient labor market that supports this economic momentum. Overall, these developments point to a cautious optimism about economic stability, albeit with growth rates remaining relatively modest.
Growth, income and spending
In the fourth quarter of 2025, GDP growth in both the euro area and the EU remained consistent at 0.3%, compared to the previous quarter. This followed a growth of 0.3% for the euro area and 0.4% for the EU in the third quarter. For the entire year, GDP growth was estimated at 1.5% in the euro area and 1.6% in the EU.
Year-on-year comparisons show that GDP in the fourth quarter grew by 1.3% in the euro area and 1.5% in the EU, indicating a slight decrease from 1.4% and 1.6%, respectively, in the third quarter.
Employment also saw modest growth, rising by 0.2% in both regions in the fourth quarter, matching the previous quarter’s growth in the euro area and slightly higher than the 0.1% in the EU. For 2025, employment increased by 0.7% in the euro area and 0.5% in the EU.
In a year-over-year context, employment grew 0.6% in the euro area and 0.7% in the EU during the fourth quarter, maintaining stability from the previous quarter’s figures. These employment trends show alignment with overall GDP and income measures as indicated by Eurostat.
Saving and investment behaviour
In the fourth quarter of 2025, GDP growth in the euro area and EU remained consistent at an increase of 0.3%, maintaining the same growth rate as the previous quarter. Year-on-year, GDP increased by 1.3% in the euro area and 1.5% in the EU, reflecting a slight decrease from the previous quarter’s growth rates.
Employment demonstrated a steady increase of 0.2% in both regions compared to the prior quarter. Yearly growth in employment was recorded at 0.6% in the euro area and 0.7% in the EU, maintaining similar rates to the third quarter.
Overall, saving and investment behaviors reflected stability in GDP and employment metrics throughout the reported periods, with consistent growth rates but slight moderation in year-on-year figures.
Diverging national patterns
In the fourth quarter of 2025, the economic performance indicators for the euro area and the EU reflect both similarities and nuanced divergences. While GDP growth for both regions increased by 0.3% compared to the previous quarter, the annual growth rates suggest a slight edge for the EU overall, with a reported 1.6% compared to 1.5% in the euro area. This pattern continues in employment statistics, where both regions experienced a 0.2% quarterly increase in the number of employed persons, but annual employment growth figures show the euro area slightly outpacing the EU at 0.7% versus 0.5%.
When evaluating year-on-year performance, the euro area’s GDP increased by 1.3%, aligned closely with the EU’s 1.5%, indicative of consistent underlying economic conditions but highlighting a marginally stronger annual growth trajectory in the broader EU context. Such divergences may result from varying national policies, external economic influences, or sector-specific variances affecting different member states.
These figures underscore a complex economic landscape where despite similar rates of growth in certain quarters, overarching trends may point to different structural or policy-related influences shaping the trajectories of economic growth and employment across the euro area and the EU.
What changed since last week
Key Updates
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GDP Growth:
- Fourth Quarter 2025: GDP growth remained at 0.3% in both the euro area and EU, unchanged from the previous quarter.
- Annual Growth (2025): Estimated at 1.5% for the euro area and 1.6% for the EU.
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Year-on-Year GDP Comparison:
- Q4 2025 saw a GDP increase of 1.3% in the euro area and 1.5% in the EU, down from 1.4% and 1.6%, respectively, in Q3 2025.
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Employment Figures:
- Quarter-on-Quarter: Employment rose by 0.2% in both regions, consistent with Q3 2025.
- Annual Growth (2025): Employment increased by 0.7% in the euro area and 0.5% in the EU.
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Year-on-Year Employment Comparison:
- Q4 2025 showed a 0.6% rise in employment in the euro area and 0.7% in the EU, unchanged from Q3 2025.
Summary of Revisions
- No changes in quarter-on-quarter or year-on-year GDP and employment figures from the previous quarter to the latest update.
This update primarily reflects the ongoing stability in economic indicators for Q4 2025 compared to the previous quarter.
What to watch next
Upcoming Economic Data and Scheduled Updates
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6 March 2026: Regular estimates of GDP and main aggregates (including employment) for the fourth quarter of 2025.
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20 April 2026: Further updates on GDP and main aggregates (including employment) for the fourth quarter of 2025.
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30 January 2026: Preliminary flash estimate of GDP growth for the fourth quarter of 2025 based on data from 19 Member States.
Note: Regular transmissions and comprehensive estimates are published around 65 to 110 days after the end of each quarter. Flash estimates are provided after approximately 30 to 45 days for GDP and 45 days for employment.
TL:DR
- In Q4 2025, GDP growth was stable at 0.3% for both the euro area and the EU, matching Q3 results.
- Annual GDP growth for 2025 was estimated at 1.5% in the euro area and 1.6% in the EU.
- Employment rose by 0.2% in both regions in Q4, consistent with prior trends.
- Year-over-year employment growth was 0.6% in the euro area and 0.7% in the EU for the same quarter.
What this means for you
In the fourth quarter of 2025, both the euro area and the EU saw a modest increase in GDP of 0.3% compared to the previous quarter, maintaining a similar pace to the third quarter. This stability suggests that households and businesses can expect a consistent economic environment, which may influence spending and investment decisions. For example, a household contemplating a major purchase, such as a home or vehicle, might find reassurance in steady GDP growth, while a business could use this information to evaluate expansion plans or hiring initiatives.
Employment figures also reflect this gradual growth, with a 0.2% increase across the euro area and the EU in the last quarter, consistent growth over the preceding quarter. Such trends are important for workers and employers alike; households may feel more secure in their job prospects, leading to increased consumer confidence, while businesses may look to hire in anticipation of sustained demand for their products or services. Overall, these data points paint a picture of an economy on stable footing, albeit with growth that invites cautious optimism rather than exuberance.
Data and sources
This briefing is based on official figures published by
Eurostat,
the statistical office of the European Union and European data from banks and think tanks, which we analyse daily.