About this work
Fiscal support and lower interest rates underpin the April 2025 euro area forecast of 0.7 percent growth in 2025 and 1.2 percent in 2026. Trade volatility could cause a temporary contraction, but services and employment cushion weak manufacturing. Easing inflation supports real incomes, while stable sovereign spreads help create conditions for gradual recovery.
Cite this work
Marcello Estevão, Jonathan Fortun (2025). Global Macro Views: Euro Area Outlook: Absorbing Global Uncertainty. Institute of International Finance.