ECB's Latest Inflation and Growth Forecasts for the Eurozone

The European Central Bank's Survey of Professional Forecasters (SPF) has revised its inflation expectations for the Eurozone upwards. Headline inflation is now expected to reach 2.2% in 2025, a slight increase of 0.1 percentage points from previous forecasts. Looking further ahead, inflation is projected to stabilize at 2% in both 2026 and 2027, with the latter year's forecast remaining unchanged.

Economic Growth on the Rise

The survey also brings positive news on the economic front. GDP growth is anticipated to be 0.9% in 2025 and 1.2% in 2026, marking a 0.1 percentage point increase for both years compared to earlier predictions. The outlook for 2027 is even more optimistic, with growth expected to accelerate to 1.4%, up from the previous forecast of 1.3%.

Unemployment Rates to Remain Steady

On the employment side, the Eurozone's unemployment rate is expected to hold steady at 6.3% across 2025, 2026, and 2027, indicating a stable labor market in the coming years.