Inflation Expectations Rise Slightly

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 projections for 2026 also see a minor uptick to 2%, with 2027 forecasts holding steady at the same rate.

GDP Growth Forecasts Adjusted Upwards

The survey also revised GDP growth expectations for the Eurozone, anticipating 0.9% growth in 2025 and 1.2% in 2026, both 0.1 percentage points higher than earlier predictions. The outlook for 2027 is slightly more optimistic, with growth expected at 1.4%, up from the previous 1.3%.

Unemployment Rate to Remain Stable

On the employment front, 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.