In the third quarter of 2025, the EU economy continued its mild recovery, with real GDP growing 1.6% year-on-year and 0.4% quarter-on-quarter, reaching a nominal GDP of $4.69 trillion. The annual growth rate over the past four quarters remained within a stable range of 1.5% to 1.7%, indicating resilience in economic expansion. Overall, the EU economy is gradually stabilizing after earlier volatility, though growth remains subdued, reflecting weak internal momentum. Looking at key components, gross capital formation rose 3.4% year-on-year, while exports grew 3.0%, serving as major drivers of growth and contributing 1.1% and 0.9% respectively to quarterly growth. In contrast, final consumption expenditure grew 1.5% annually but only 0.3% quarter-on-quarter, signaling cautious consumer sentiment. Meanwhile, imports increased 3.8% year-on-year and 1.3% quarter-on-quarter—outpacing both exports and domestic consumption—highlighting upward pressure on the trade deficit and limiting net export contributions to growth. Overall, current EU growth is largely supported by investment and external demand, while sluggish consumption recovery and persistently high import growth pose structural challenges. To achieve more sustainable growth, policymakers must strengthen household spending confidence and advance structural reforms to boost productivity and competitiveness. Striking a balance between supporting investment and managing inflation expectations will be critical to ensuring a steady transition toward higher-level economic momentum.