Eurozone Resilience Fades as Inflation Accelerates

The Eurozone's economic resilience is expected to fade as inflation accelerates and government support becomes increasingly costly, according to Oxford Economics.

The September ZEW survey showed a mixed picture for the Eurozone, with current conditions improving and approaching pre-war highs but expectations falling for the first time since April.

In Germany, both indicators strengthened, with the current conditions index reaching its highest level since 2023. However, economic expectations only marginally improved.

Oxford Economics predicts that inflation will rise further in 2027 and interest rates will increase accordingly, while GDP growth is expected to slow down.