Euro-Area Wages to Gain Momentum in 2027 Amid Slowing Growth

The European Central Bank (ECB) has published its wage tracker, predicting that euro-area pay increases will accelerate in 2027. The report states that salaries are expected to rise by an annual 2.7% in the first quarter of next year and 2.8% in the second.

According to the ECB's data, wages in the euro area have been growing at a slower pace than previously seen. In 2024, pay increases peaked at 5.2%, but are expected to pick up speed in 2027, albeit still below historical highs.