Euro Area GDP Growth Revised Upwards to 0.9% in 2026

The European Central Bank (ECB) staff has revised upwards its projections for euro area GDP growth, predicting it will reach 0.9% in 2026, 1.4% in 2027, and 1.5% in 2028.

This is more resilient than previously anticipated, especially considering the ongoing conflict in the Middle East, which has had a significant impact on energy prices and global demand.

The ECB staff expects export growth to improve as foreign demand strengthens, with domestic demand supported by a recovery in real incomes driven by lower energy inflation and a resilient labour market.