December 25, 2024
Economists have lowered expectations for eurozone growth in 2025 and 2026 thumbnail
Economy

Economists have lowered expectations for eurozone growth in 2025 and 2026

Next year, the eurozone economy will pick up less momentum than previously forecast and grow only slightly stronger than in 2024.”, — write: epravda.com.ua

Next year, the eurozone economy will pick up less momentum than previously forecast and grow only slightly stronger than in 2024. This is stated in a Bloomberg survey. Analysts who took part in the survey predict a growth of 1% in 2025. While that’s up from 0.8% this year, it’s down from the previous estimate of 1.2%. They also lowered their expectations for 2026 to 1.2% from 1.4%. For Germany, which is struggling with a prolonged downturn in its key manufacturing sector, economists now forecast growth of 0.4% in 2025 and 1% in 2026, or 0.3 percentage points each year. Forecasts for France have also been cut, while Spain will grow slightly faster than previously.Advertisement: These forecasts are more pessimistic than those of the European Central Bank, which also downgraded its forecasts this month, cutting interest rates for the fourth time since June. Officials still expect households to drive the recovery as incomes rise and inflation stabilizes at 2%, though they have repeatedly reassessed how quickly the stimulus will materialize. Recall: Advertisement: Manufacturing activity in the eurozone fell sharply last month, and a further drop in demand is likely to have dashed any hopes of a quick recovery after the sector showed some signs of stabilization in October.

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