European economy 2025: hope for growth after a difficult 2024

The year 2024 has been a difficult one for Europe, which has experienced political instability, weak economic indicators and the threat of slowing growth. Nevertheless, analysts see positive prospects for 2025. 

The European Central Bank has revised its economic growth forecast for 2025, reducing it to 1.1%. There was a slight slowdown in inflation in the eurozone in autumn, but in November it again exceeded the 2% target set by the ECB.  

Monetary policy will be a key factor for the eurozone. The ECB has already announced a fourth rate cut, and markets expect another 25 basis point cut in early 2025. Analysts predict further declines that could be a powerful stimulus for the economy, bringing the ECB rate below 2% and the deposit rate to 1%. 

The level of consumer confidence in the eurozone continues to remain at a low level, which indicates a crisis of confidence. Experts note that Europe has faced constraints in fiscal and monetary policy over the past two years. At the same time, making adjustments to this course by 2025 may become a decisive factor for improving the economic situation in the region.