ING Says Eurozone GDP Growth Holds Steady in Q4 as Outlook Improves

06:14 AM EST, 01/30/2026 (MT Newswires) -- Gross domestic product growth in the eurozone held steady at 0.3% quarter-on-quarter in Q4, said ING after Friday's data.

This was slightly better than expected, as sentiment data had been more downbeat toward the end of the year, wrote the bank in a note. However, accelerating growth in Germany, Spain and Italy, to a lesser extent, made up for slow growth in France.

But the eurozone economy seems set to show accelerated growth over the coming quarters, and if the European Commission's economic sentiment indicator (ESI) is anything to go by, ING stated it could already see this happening quite soon.

January's ESI was buoyant and reached the highest level in three years, which was a broad-based improvement between countries and large sectors.

Also, industry seems to have started a bit of a production revival at the end of last year, which is expected to increase in strength as this year sees more defense investment and German infrastructure spending coming through, pointed out the bank.

Of course, many factors are dampening the eurozone outlook too, added ING. The global environment remains uncertain, and the eurozone has been losing competitiveness. This makes trade a likely factor subtracting from growth this year.

These broader structural concerns aren't being addressed quickly enough at the moment, which curbs longer-term prospects. But the domestic boost should be enough to expect a "modest" acceleration of growth for the eurozone, which is already quite something in this environment of significant turmoil, according to the bank.

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