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 outlook for 2026 also sees a minor adjustment, with inflation projected at 2%, up by 0.1 percentage points, while the 2027 forecast remains steady at 2%.

GDP Growth Forecasts Revised Upward

The survey reveals optimistic adjustments in GDP growth expectations. The Eurozone's economy is now expected to grow by 0.9% in 2025 and 1.2% in 2026, both figures revised upwards by 0.1 percentage points. Looking further ahead, the 2027 growth forecast has been slightly increased to 1.4%, up from the previous 1.3%.

Unemployment Rate to Remain Stable

On the employment front, the unemployment rate is anticipated to hold steady at 6.3% across 2025, 2026, and 2027, indicating a stable labor market outlook for the Eurozone.