Inflation Expectations Rise

According to the latest European Central Bank's Survey of Professional Forecasters (SPF), headline inflation in the Eurozone is expected to reach 2.2% in 2025, marking a 0.1 percentage point increase from previous forecasts. The projection for 2026 has also been adjusted upwards to 2%, with 2027 forecasts remaining steady at the same rate.

GDP Growth Outlook Brightens

The survey also revised GDP growth expectations, anticipating 0.9% growth in 2025 and 1.2% in 2026, both up by 0.1 percentage points. The euro area's economy is expected to expand by 1.4% in 2027, a slight improvement from the previous estimate of 1.3%.

Unemployment Rate to Remain Stable

The unemployment rate is projected to stay constant at 6.3% across 2025, 2026, and 2027, indicating a stable labor market outlook for the Eurozone.