The European Commission has lowered its economic forecast for this year. In the current spring forecast, it is assumed that the economy in the Eurozone will grow by 0.9% in 2025 and by 1.4% in 2026, according to the Brussels authority, which announced this on Monday. In the autumn, it had expected a growth of 1.3% in the current year.
For the EU as a whole, the Commission expects a growth of 1.1% in 2025 and 1.5% in the following year. The overall inflation in the Euro currency area is expected to slow down from 2.4% in 2024 to an average of 2.1% in 2025 and 1.7% in 2026. In the EU, inflation is expected to follow a similar trend from a slightly higher level in 2024 and fall just below two percent in 2026.
“Despite the high trade tensions and increasing global uncertainty, the EU economy is showing resilience” said EU Commissioner Valdis Dombrovskis. “Supported by a robust labor market and rising wages, growth is expected to continue in 2025, albeit at a moderate pace.” Inflation is expected to fall faster than previously forecast and is on track to meet the two-percent target this year. “But we cannot be complacent. The risks to the outlook are still predominantly downside, which is why the EU must take decisive measures to enhance our competitiveness” said Dombrovskis.