Inflation and GDP Growth Outlook

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 slight increase of 0.1 percentage points from previous forecasts. Looking further ahead, inflation projections for 2026 have been adjusted upwards to 2%, while the forecast for 2027 remains steady at the same rate.

Economic Expansion and Unemployment Rates

The survey also highlights an optimistic revision in GDP growth forecasts, with the euro area's economy anticipated to expand by 0.9% in 2025 and 1.2% in 2026, both figures seeing a 0.1 percentage point increase. The outlook for 2027 is even brighter, with growth expected to hit 1.4%. On the employment front, the unemployment rate is projected to remain constant at 6.3% across 2025, 2026, and 2027.