Inflation & Prices

Euro-Zone Soft Landing on Track But With Wider Deficit, EU Says

  • GDP to expand 0.8% in 2024 — unchanged from previous forecast
  • Inflation seen slowing to 2.1% in 2025, down from 2.2%
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The euro-area economy is still headed for a soft landing, with inflation backpedaling more quickly than previously expected and growth picking up through next year, according to the European Commission.

Gross domestic product will increase by 0.8% this year and 1.4% in 2025 — almost unchanged compared with the last set of forecasts three months ago, the EU’s executive arm said Wednesday in a report. It now sees inflation slowing to 2.5% and 2.1% this year and next — down from 2.7% and 2.2% previously.