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IMF: EU economy will hardly gain momentum in 2025
Analysts at the International Monetary Fund are skeptical about a revival in the eurozone’s economy. Once the region with steady economic growth, the EU has been losing momentum year by year.
According to the IMF’s estimates, EU GDP growth in 2025 is expected to slip to 1%, with no improvement in sight. The lending institution predicts the eurozone's GDP will grow by just 1% this year and by 1.4% in 2026.
Compared to the forecasts presented in October 2024, growth forecasts for the EU economy in 2025 have been downgraded by 0.2 percentage points. For 2026, IMF analysts have revised the figure down by 0.1 percentage points.
The IMF attributes the downward revision of the forecasts to the persistent impact of geopolitical tensions. The mounting political uncertainty is adding fuel to the fire. However, the IMF anticipates that domestic demand and consumer confidence will strengthen in 2026.
Earlier, IMF experts highlighted the risks of a looming debt crisis in the eurozone, with contributing factors including political uncertainty, lack of economic growth, and rising public debt.
In the fall of last year, EU leaders took measures to boost economic growth "to avoid falling into a slow agony."
© InstaFintech Group
