The European Commission, in its spring economic forecasts released today, projects a growth of 0.9% in the eurozone in 2025. This is a downward revision compared to the previous estimates of 1.3% and 1.4% given in November 2024 and May of the previous year, respectively.
“This represents a significant downward revision compared to the autumn forecast, primarily due to the impact of increased tariffs and the heightened uncertainty caused by recent and abrupt changes in U.S. trade policy, as well as the unpredictability of the final configuration of those tariffs,” the institution explains in the document.
This new downgrade is also reflected in the projections for 2026, with Brussels now foreseeing the eurozone GDP to grow by 1.4% in the next year, following a calculation of 1.6% in November 2024.
For the entire European Union (EU), the Commission projects that the EU GDP will increase by 1.1% this year and 1.5% next year. Previously, growth was anticipated to be 1.5% in 2025 and 1.8% in 2026 (as per the November 2024 forecasts) and 1.4% this year (as per the May 2024 forecasts).
The expected rise next year, as compared to this year, is “due to the continued growth in consumption and the recovery in investment,” the European Commission adds.
