The EU's statistics agency Eurostat said on Friday that GDP in the eurozone expanded by 0.4% in the third quarter, a slowdown from the 0.6% seen in the second quarter. The figure was higher than the 0.2% predicted by economists surveyed by Bloomberg.
Growth is becoming increasingly uneven across countries, with Germany and Spain gaining traction while France and Italy slow, Oxford Economics' Grignani said in a note.
Investment in AI, defense and infrastructure, as well as household spending and foreign demand, helped support growth. However, high energy costs, geopolitical tensions and the risk of further interest rate hikes continue to weigh on the economy.
Gas prices in Europe have reached their highest level since the Russia-Ukraine conflict began in 2022, putting further pressure on businesses and consumers.
