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Lower forecasts for eurozone economic growth in 2025

ECB officials expect inflation to stabilize

Dec 23, 2024 15:21 54

Lower forecasts for eurozone economic growth in 2025  - 1

Analysts have revised down their forecasts for eurozone economic growth in 2025 from 1.2% to 1%, Bloomberg reported.

Experts surveyed by the agency also lowered their forecast for 2026 - instead of 1.4%, they now expect growth of 1.2%. The leading economy in the eurozone - Germany, will grow by only 0.4% in 2025, and in 2026 this figure will be 1%. As the agency notes, both forecasts have been cut by 0.3 percentage points.

France's GDP growth forecast has also been revised downwards, while Spain's economy is expected to grow at a slightly higher rate than previously expected. Experts also predict that eurozone inflation will fall to the target of 2% in the second quarter of 2025, and a year later it will fall to 1.9%.

The economists' forecasts are slightly more pessimistic than those of the European Central Bank (ECB). According to the ECB's December forecasts, the eurozone economy will grow by 1.1% in 2025 and by 1.3% in 2026. ECB officials are counting on rising consumer spending as incomes rise and inflation stabilizes, but "these officials routinely overestimate how quickly this growth stimulus will materialize," the agency wrote.