European Commission sees Eurozone economy picking up in 2025 and 2026

• Sees Eurozone economic growth at 0.8% in 2024, 1.3% in 2025, and 1.6% in 2026
• Sees Eurozone inflation at 2.4% in 2024, 2.1% in 2025, and 1.9% in 2026

Of note, they are forecasting the German economy to contract by 0.1% this year as compared to their previous forecast of 0.1% growth in the spring. Meanwhile, the French economy is forecast to expand by 1.1% this year. Looking to next year, the commission notes that:

“Geopolitical risks and policy uncertainty have further increased. In addition to the risks related to the wars in Ukraine and the Middle East, a further increase in protectionist measures by trading partners could weigh on international trade.”

This article was written by Justin Low at www.forexlive.com.