The European Fee expects financial progress after stagnation

by AI | 15.Nov 2024 | Europe in short AI

BRUSSELS (ANP) – After a protracted interval of financial stagnation, the European economic system will enhance within the coming interval. That is predicted by the European Fee in its semi-annual financial forecast introduced on Friday.

Inflation within the European Union is falling. Picture: APA/dpa-Zentralbild/Patrick Pleul

The gross home product (GDP) of the European Union is predicted to develop by 0.9 % this 12 months. The Fee additionally predicts progress for EU international locations utilizing the euro, at 0.8 %. In line with the forecast, financial exercise within the EU will enhance by 1.5 % in 2025 and by one other 1.6 % in 2026.

Inflation within the eurozone seems to halve in 2024, from 5.4 % final 12 months to 2.4 % in 2024. Subsequent 12 months, inflation will nonetheless lower however at a slower tempo. The Fee expects an inflation price of two.1 % and 1.9 % in 2026. The purpose is a most of two %.

Employment continues to develop, however at a slower tempo than earlier than. In 2024, employment within the EU grew by 0.8 %. In 2025, the Fee expects a 0.5 % progress.

Regardless of a constructive outlook, the European Fee sees a number of vital dangers, such because the struggle in Ukraine and rising tensions within the Center East. These primarily endanger the vitality provide and will result in greater shopper costs. Protectionist measures from international locations outdoors the EU may also severely impression the European economic system.

(November 15, 2024)