Eurozone GDP is expected to grow by 0.7% in 2024 and 1.5% in 2025

GDP growtheuro area It is expected to remain low at 0.7% in 2024, but is expected to rise to 1.5% in 2025 as domestic demand recovers. This is revealed by the OECD's economic forecasts. “Rising wages and real incomes in the labor market will stimulate private consumption as inflation declines. Investment will benefit from the gradual easing of credit conditions and continued capital spending. Recovery and resilience facilities” says the report. “Wage growth is expected to moderate over the forecast period as bottlenecks in the service sector ease, leading to underlying inflation reaching 2% by mid-2025,” the report continues. There is. OECD analysis.

organization based in Paris “Fiscal policy will be tightened in 2024 and 2025, with the phasing out of energy support measures,” it states. As inflation returns to target, prudent fiscal policy is needed to restore some room for maneuver and complement gradual easing of monetary policy. ” The OECD reports that in line with Europe's new budget rules, “prudent fiscal policy will focus on debt sustainability and multi-year spending plans.”