In its quarterly assessment published on Friday, the European Commission projects a bright economic outlook for the Eurozone in 2025 and 2026, but warned of risks abroad.
Additional points
It forecasts economic growth in the Eurozone of 0.8% in 2024, 1.3% in 2025 and 1.6% in 2026.
It forecasts inflation in the Eurozone of 2.4% in 2024, 2.1% in 2025 and 1.9% in 2026.
It forecasts a Eurozone budget deficit of 3.0% in 2024, 2.9% in 2025 and 2.8% in 2026.
It foresees a Eurozone public debt of 89.1% in 2024, 89.6% in 2025 and 90.0% in 2026.
He sees increasing risks to the outlook due to the war in Ukraine, the conflict in the Middle East and protectionism in trade.
German GDP will grow 0.7% in 2025 compared to 1.0% growth in the previous forecast.
German GDP growth is expected to accelerate to 1.3% in 2026, but remain below the Eurozone average of 1.6%.
The German economy will contract 0.1% this year compared to 0.1% growth in the spring forecast.
Market reaction
EUR/USD holds the latest rally near 1.0568, up 0.35% on the day, at the time of writing.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
