Economics
Eurozone growth slowed to 0.8-1.1% as Asia surged
Asia kept strong gains with China growing 4.3-4.6% and South Korea 3.0-3.4%.
Eurozone output barely expanded in the third quarter of 2026, registering growth between 0.8% and 1.1%. By contrast, Asian economies posted solid increases, with China and South Korea both reporting robust year-on-year gains. North American activity was modest, as Canada's monthly output was flat to slightly positive and Mexico's quarterly growth hovered around three percent.
Within the bloc, Germany outperformed the regional average, posting a quarterly rise of at least 1.3%. The broader Eurozone figure of 0.8-1.1% reflected weaker performance in other member states. The German reading, released on Friday, suggested that the country's economy was holding up better than its neighbours.
China's third-quarter growth was confirmed on 21 October at a range of 4.3% to 4.6%, topping earlier expectations. Both figures indicated that the Asian region remained a driver of global growth despite external headwinds.
Canada's August 2026 monthly output change, released on 30 October, was measured at a marginal 0.0% to 0.1%. Mexico's third-quarter growth, also reported on 30 October, fell within a 2.5%-3.0% band. The modest Canadian reading contrasted with Mexico's slightly stronger quarterly expansion.
The data set, finalized by the end of October, painted a clear split between a sluggish Eurozone and a resilient Asia. North America showed mixed signals, with Canada flat and Mexico posting moderate growth.
Analysis
The Eurozone's tepid expansion signals lingering demand weakness and may limit the European Central Bank's ability to tighten policy without risking a slowdown. Countries that lag behind Germany could face heightened fiscal pressures as growth differentials widen.
Asia's performance, anchored by China's 4.3-4.6% rise and South Korea's 3.0-3.4% increase, suggests that the region continues to generate excess capacity and export momentum. However, the upper range of China's growth still leaves room for volatility if external demand falters.
In North America, Canada's near-zero monthly change points to a stagnant domestic cycle, while Mexico's 2.5-3.0% quarterly gain offers a modest counterbalance. The contrast raises questions about the region's overall resilience and the potential spill-over effects on trade partners.
Taken together, the divergent paths create a complex backdrop for global policymakers. Coordination may be hampered by the Eurozone's need for stimulus, Asia's push for demand, and North America's mixed signals, leaving the near-term outlook uncertain.
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