European Commission forecasts 0.8% growth for Euro Area in 2024

The European Commission's Autumn 2024 forecast projects a 0.8% growth for the Euro Area this year, matching the previous Spring estimate.

European Commission forecasts 0.8% growth for Euro Area in 2024

EU Economy Commissioner Paolo Gentiloni noted that as inflation continues to ease and private consumption and investment pick up, with unemployment at record lows, growth is expected to accelerate gradually over the next two years. However, the growth forecast for 2025 was revised down slightly to 1.3% from 1.4%, while the Eurozone economy is projected to grow by 1.6% in 2026. On the other hand, the German economy is now expected to contract by 0.1% this year, a change from the previously forecasted 0.1% growth. Germany’s economy is forecast to grow by 0.7% in 2025 and 1.3% in 2026.

Inflation in the Euro Area set to halve in 2024, gradually easing further by 2026

Despite a slight uptick in October, mainly due to energy prices, headline inflation in the Euro Area is expected to decrease significantly, falling to 2.4% in 2024 from 5.4% in 2023 and easing further to 2.1% in 2025 and 1.9% in 2026.