The eurozone economy expanded by 0.4% in the third quarter of 2026, slowing from 0.6% growth in the previous quarter but exceeding market expectations of 0.2%, according to preliminary estimates. Ireland remained the strongest performer, recording growth of 5.5%, driven by robust AI-related investment. Spain and the Netherlands both expanded by 0.6%, supported by solid consumer spending. Germany’s economy grew by 0.2%, above expectations of 0.1% but down from 0.3% in Q2, as consumer spending provided support amid weaker exports and declining investment. In contrast, France unexpectedly contracted by 0.1%, as falling exports and investment weighed on activity, while Italy’s economy stagnated due to a decline in industrial output. On an annual basis, eurozone GDP growth accelerated to 1.3% in Q3, up from 1.2% in the previous quarter and above expectations of 1.1%.