OECD Predicts Eurozone Growth Amid Falling Energy Prices

The Organisation for Economic Co-operation and Development (OECD) has released its latest forecasts for eurozone growth, predicting a moderate expansion of 1 percent in both 2026 and 2027. The OECD expects energy prices to fall and new defence spending initiatives to take effect, which will help mitigate the impact of rising interest rates on economic activity.

Germany is forecasted to grow at 1.1 percent in 2026, while Italy is expected to grow at 0.9 percent. Spain is projected to lead the pack with a growth rate of 2.6 percent. The OECD revised its projections for France downwards, forecasting growth rates of 0.4 percent in 2026 and 0.7 percent in 2027.

Regarding inflation, the OECD anticipates that the eurozone will see high inflation rates in the short term, attributed to recent gas price increases, before receding slightly from 3 percent in 2026 to 2.9 percent in 2027.