FX.co ★ EU Raises 2025 Eurozone Growth Forecast

The European Commission has revised its growth projections for the Eurozone economy for 2025, predicting an increase to 1.3%, a rise from the 0.9% forecasted in the spring update, as stated in the Autumn report. Following this, growth is expected to slightly decelerate to 1.2% in 2026, then increase to 1.4% by 2027. The Commission highlighted that economic performance surpassed expectations in the first nine months of the current year, bolstered by increased exports to the United States as companies prepared for the imposition of tariffs by Trump, alongside stronger than anticipated investments in equipment and intangible assets. Within the major Eurozone economies, Germany's growth is projected at 0.2% in 2025, an improvement from the previous -0.2% forecast, with further growth to 1.2% in both 2026 and 2027. France is anticipated to grow by 0.7% this year, adjusted downwards from 1.2%, expected to rise to 0.9% in 2026 and 1.1% in 2027. Meanwhile, Spain is forecasted to lead with growth rates of 2.9% in 2025, 2.3% in 2026, and 2.0% in 2027. Italy is projected to experience growth of 0.4% in 2025, followed by a steady 0.8% in both 2026 and 2027.