Europe's Economic Growth Forecast for 2025

The growth outlook for Europe in 2025 is generally cautiously optimistic, with expectations of positive growth around one to one and a half percent. This nuanced forecast arises from a surprisingly resilient labor market, which has continued to perform better than anticipated despite previous interest rate hikes. Even with inflation decreasing, signs point toward a stable economic environment that may avoid a severe recession. Central banks appear poised to support this positive trajectory by implementing rate cuts, which could further bolster economic activity.