MNI: Eurozone To Grow 1.3% In 2025, European Commission Says
MNI (BRUSSELS) - The European Commission expects eurozone economic growth to rise to 1.3% in 2025 from 0.8% this year, and to reach 1.6% in 2026, thanks to lower interest rates and rising real disposable incomes, it said in its autumn forecasts on Friday.
Inflation should decline from 2.4% this year to 2.1% next year and fall below the European Central Bank’s 2% target in 2026 at 1.9%. The inflation forecast for this year was revised down 0.1 percentage point from spring, but 2025’s was unchanged. (See MNI SOURCES: ECB Heads For 25BP Cut; Risks From Trump, Germany)
Core inflation is projected to remain above headline inflation over the entire forecast horizon, although the gap is expected to narrow gradually.
Germany’s economy is set to grow by only 0.7% next year, and 1.3% in 2026, after contracting by 0.1% in 2024. (See MNI INTERVIEW: German Economy "Stuck," Top Economist Says)
Growth in France is estimated at 1.1% in 2024, followed by 0.8% and 1.4% over the next two years. Comparable numbers for Italy are 0.7%, 1.0% and 1.2%, while Spain should grow by 3.0%, 2.3% and 2.1%.