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Moderate recovery vs mounting risks: what to expect from Europe's economy in 2025

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77% Informative

The eurozone's GDP is projected to grow by 0.8 percent in 2024 , driven by easing inflation and a recovery in consumption and investment.

Growth is expected to accelerate to 1.3 percent in 2025 and 1.5 percent in 2026 .

Geopolitical tensions, rising protectionism, and mounting pressure from U.S. policies present significant risks.

Markets are increasingly factoring in the widening gap between U.S. and ECB monetary policies.

The currency has depreciated by 8 percent since last September , deepening concerns over the worsening economic outlook for the eurozone.

Calls are mounting for a more accommodative monetary stance, with suggestions that the ECB could lower rates by an additional 100 basis points in 2025 .