The EU Commission predicted that domestic demand will drive economic growth in the future, saying that consumption will expand further as wage purchasing power gradually recovers and interest rates fall.
Following this trend, the eurozone's growth rate is expected to reach 1.6% in 2026.
It also predicted that euro zone inflation would gradually ease from 2.4% this year to 2.1% next year and 1.9% in 2026.
The Commission, however, assessed that geopolitical risks and vulnerabilities in European energy security persist as the war in Ukraine drags on and the Middle East conflict intensifies.
It also noted that further increases in protectionist measures by trading partners could weigh on global trade and negatively impact the EU economy with high openness, adding that there is still much uncertainty.
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