The Eurozone economy demonstrated unexpected resilience in the final quarter of 2025, expanding by 0.3%. This outperformed the market consensus of 0.2% and matched the growth seen in the previous quarter. On an annual basis, the bloc’s GDP rose by 1.4%, also beating expectations of 1.2%. Complementing the growth data, the regional unemployment rate improved slightly, falling to 6.2% in December.
In Germany, the continent’s largest economy, GDP grew by 0.3% in Q4, a significant recovery from the stagnation (0%) recorded in Q3. Despite these “upbeat” figures, the Euro remains under pressure. The EUR/USD pair fell over 0.50% to trade near 1.1900, largely driven by a strengthening US Dollar as markets anticipate the nomination of Kevin Warsh as the next Federal Reserve Chair.