Eurozone Growth Surges in 2025, EU Commission Forecasts Higher Than Expected

We are seeing a surprising rebound in the Eurozone economy. According to the latest forecast from the European Commission, the euro area’s GDP is expected to grow by 1.3% in 2025, a strong upgrade from its earlier projection. This is a clear sign that the region is bouncing back more forcefully than many had assumed. Inflation is also set to ease, with the Commission forecasting a drop to 2.1%, getting closer to the European Central Bank’s (ECB) target. Meanwhile, the labor market remains relatively solid, which adds further hope for sustained recovery. As we watch this turnaround, we need to ask: What’s driving it? And how long can this momentum last?