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The European Commission’s Autumn forecast showed a firmer growth profile for the Eurozone, with 2025 GDP now expected to rise 1.3%—a notable upgrade from April’s 0.9%. Growth is set to dip only marginally to 1.2% in 2026 before accelerating to 1.4% in 2027. The Commission said early-year momentum, boosted by exports brought forward in anticipation of tariff increases, demonstrated the EU economy’s capacity to absorb external shocks.
On prices, the Commission sees inflation steadily moderating, falling to 2.1% in 2025 and 1.9% in 2026 after averaging 2.4% last year. It highlighted that inflation is “nearing the ECB target” and that financing conditions have improved meaningfully, creating a more supportive backdrop for consumption and investment.
Overall, the forecast pointed to modest but stable growth as the dominant theme for the coming years. Despite a complex global environment, the Commission believes the Eurozone is positioned for a gradual reacceleration, with cooling inflation and easier financial conditions helping anchor the recovery.
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