EU Lowers Economic Growth Forecast for Eurozone in 2025

The European Union (EU) has downgraded its economic growth forecast for the eurozone to 0.9% for 2025, citing increased tariffs and heightened uncertainty caused by the recent changes in US trade policy, according to the EU Commission's Spring 2025 Economic Forecast report. The report also projects the EU's gross domestic product (GDP) to grow by 1.1% in 2025 and 1.5% in 2026. The EU's inflation is expected to reach 2.3% this year, before falling to 1.9% in 2026.

Key Takeaways:

• The EU has lowered its economic growth forecast for the eurozone to 0.9% for 2025, down from 1.3%, due to increased tariffs and heightened uncertainty caused by US trade policy changes.
• The EU's gross domestic product (GDP) is expected to grow by 1.1% in 2025 and 1.5% in 2026.
• Inflation is expected to reach 2.3% in the EU this year, before falling to 1.9% in 2026.
• Turkish economy's inflation is expected to continue declining due to tight monetary and fiscal policies, as well as lower energy prices.
• Turkey's budget deficit is expected to decrease, while public debt will remain at moderate levels.
• The report warns that further fragmentation of global trade could dampen growth and reignite inflationary pressures.

Statistics:

• EU economic growth forecast for 2025: 0.9%
• Eurozone economic growth forecast for 2025: 1.1%
• EU's gross domestic product (GDP) growth forecast for 2026: 1.5%
• EU inflation forecast for 2025: 2.3%
• EU inflation forecast for 2026: 1.9%
• Turkish economy's inflation forecast for 2025: continuing decline
• Turkey's budget deficit forecast for 2025: decreasing
• Turkey's public debt forecast for 2025: moderate levels

Sources:

• EU Commission's Spring 2025 Economic Forecast report
• Turkish economy's inflation forecast for 2025: continuing decline
• Turkey's budget deficit forecast for 2025: decreasing
• Turkey's public debt forecast for 2025: moderate levels