Eurozone economy grows 0.4% despite the Iran war oil shock, beating forecasts as crisis-hit France unexpectedly shrinks

From the Newshound archive · first published 30 October 2026.

Ireland's extraordinary 5.5% GDP surge helped pull the eurozone's overall Q3 figure to 0.4%, double the 0.2% analysts had forecast, though Eurostat warned the Irish numbers — inflated by multinational exports booked there — skewed the bloc-wide reading. Inflation running at 3.8% has the European Central Bank weighing a rate rise at its December meeting despite the growth beat.

France contracted 0.1% as political deadlock over its budget deficit spooked business confidence and triggered nationwide cost-of-living unrest.

Germany eked out just 0.2% growth, weighed down by high energy prices and low river levels disrupting commerce, while Italy flatlined entirely.

Oxford Economics' Paolo Grignani warned of 'worrying signs' that oil price rises are spreading to wages and prices across the wider economy.