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Euro zone economy slows to 0.4% growth in Q3 as crisis-hit France contracts

CNBC World •
October 30, 2026 • 10:03 AM
• By Jenni Reid
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Economic expansion in the euro zone slowed to 0.4% in the third quarter, statistics agency Eurostat said on Friday.

Euro zone economy slows to 0.4% growth in Q3 as crisis-hit France contracts

Economic expansion in the euro zone slowed to 0.4% in the third quarter, statistics agency Eurostat said on Friday.

The 21-nation euro area rebounded to 0.6% growth in the second quarter, following stagnation in the first three months of the year.

The flash third quarter reading was nonetheless higher than the 0.2% growth that was forecast in a Reuters poll of economists.

However, France's economy unexpectedly contracted by 0.1% over the July to September period. The country is grappling with soaring borrowing costs as investors balk at a political struggle to reduce its high deficit amid growing nationwide unrest over the cost of living.

The European Central Bank voted to hold interest rates steady on Thursday , saying a shock from higher energy prices was not yet feeding into second-round effects in the wider economy. But analysts said the ECB may still opt for one more rate hike in December as energy costs remain elevated.

The central bank also said that downside risks to growth had increased.

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