The euro zone economy continued to grow at a modest pace in the third quarter, while its trade surplus surged in September, driven by strong exports to the United States, according to data released by Eurostat on Thursday.
Gross domestic product across the 20-nation currency bloc rose 0.2% from the previous quarter, confirming preliminary estimates from late October. On an annual basis, GDP expanded 1.4%, slightly exceeding economists’ expectations of 1.3%, as Spain and France offset stagnation in Germany, which is facing its third consecutive year of weak output, subdued exports, and muted consumer spending.
Despite ongoing global trade tensions and economic uncertainty, the euro zone has shown unexpected resilience. Analysts, however, note that growth remains slow compared to other major economies, and few immediate factors suggest acceleration in the near term.
Eurostat also reported that the bloc’s trade surplus jumped to €19.4 billion in September from €1.9 billion in August. Exports to the US rose faster than imports, bolstering the balance despite earlier tariffs that had dampened demand. Across the European Union, the trade surplus with the United States reached €22.2 billion in September, up from €6.5 billion in August and €18.5 billion a year ago.
The increase was largely fueled by chemicals, including pharmaceuticals, and machinery exports. Economists caution that the spike may be temporary, as pharmaceutical exports are known to fluctuate significantly, partly due to the concentration of major global drug companies in Ireland, which can affect trade flows for tax reasons.
The September surplus represents the highest monthly trade balance since March, when US companies stocked up on goods ahead of new tariffs. Analysts warned that short-term factors, such as tariff-related frontloading, can heavily influence monthly data, and advised against drawing broader conclusions from a single month’s figures.
Overall, while the euro zone continues to expand, the pace of growth remains modest, with Germany’s stagnation limiting the bloc’s overall momentum. Spain’s robust performance and rising exports to key markets like the US have provided support, but economists remain cautious about the sustainability of these trends given persistent global uncertainties.
The latest data highlights the euro zone’s ability to weather trade tensions and maintain steady, if slow, economic growth, while the spike in exports underscores the region’s ongoing reliance on international trade, particularly with the United States.
