OECD revises eurozone GDP forecast upwards to 1.2%

The eurozone economy is expected to grow 1.2% this year and 1% next year, according to estimates from the OECD, which revised its forecast for 2025 upwards and that for 2026 downwards in the report released this Tuesday.

These projections represent an upward revision for this year's growth of 0.2 percentage points (pp), compared to June, while the forecast for 2026 is 0.2 pp below the previous one.

In its interim Outlook report, the Organization for Economic Cooperation and Development (OECD) highlights that “increased trade tensions and geopolitical uncertainty will be somewhat offset by easier credit conditions.”

Among member states, "fiscal expansion should boost economic activity in Germany, but the expected consolidation in both France and Italy should hinder growth," the organization forecasts.

Inflation in the eurozone is expected to reach 2.1% this year and 1.9% next year, according to OECD projections, thus remaining below the European Central Bank's 2% target.