Gross domestic product in the European Union grew 0.4 percent in the third quarter of 2025 relative to the previous quarter, demonstrating resilience in the face of immense challenges, including trade disputes with the U.S. and fierce competition from China. Denmark saw the highest rate of growth, driven by its pharmaceutical industry.
However, growth across the Continent was again highly uneven. While less economically developed countries surged ahead (in Poland, for example, household consumption and rising consumer sentiment fueled increases in GDP and employment), key European heavyweights remain in limbo. In Germany, the EU’s traditional economic engine, unemployment reached a 12-year high, and political instability in France is also leaving its mark on growth. Additionally, Europe’s shift away from cheaper Russian energy has left it dependent on a limited number of costlier alternatives.
