The economy grew 0.4 percent in the Euroarea and the EU27 in the third quarter -- slightly lower than was forecast, according to a report by Eurostat, the official statistical organization.

The economy grew 1.9 percent compared to the same period last year in the Euroarea, and rose 2.1 percent in the EU27, the report stated.

Economists were expecting the economy to expand 0.5 percent in the third quarter from the previous quarter.

The slowdown in euro-zone GDP in the third quarter will do little to ease growing fears about the region's periphery, Jennifer McKeown, an economist at Capital Economics, said in a note.

Most of the slowdown was related to Germany, she added.

Earlier in the day, Germany reported a slowdown in economic growth at 0.7 percent after a surge of 2.3 percent in the previous quarter. Economists were expecting a growth of 0.8 percent for the quarter.

However, France expanded by just 0.4 percent, Italy by 0.2 percent and Spanish GDP stagnated. Data are not yet available for the rest of the periphery, but we expect Greece, Portugal and Ireland to have remained in, or slipped back into, recession, McKeown said.

Greece's economy continued to stagger as it fell 1.1 percent in the quarter, followed by Romania at negative 0.7 percent, according to the Eurostat report.

The Czech Republic showed the strongest GDP growth sequentially at 1.1 percent, followed by Austria and Slovakia at 0.9 percent in the third quarter.

With the periphery looking worse and worse, we still see the euro-zone's recovery grinding to a halt next year, which should mean further downward pressure on the euro, McKeown added.