Spain eyes bright eurozone economic outlook in 2025

According to analysts, the eurozone economy will grow by 1.2% in 2025, up from 0.8% this year, mainly due to a strong performance in Spain. However, weak performance in Germany is likely to limit growth. The eurozone economic forecast for the first quarter of 2025 was recently published, which showed that gross domestic product (GDP) growth in the eurozone was 0.8% in 2024, rising to 1.2% in 2025. Spain’s economic performance is expected to be resilient, while Germany’s growth is likely to slow. Inflation is likely to be slightly lower in the new year, at 2.4%, down from the previously expected 2.5%, mainly due to a more pronounced fall in energy prices. However, economic and geopolitical risks remain for next year, especially given that new government leaders in the EU, US and Germany could make significant changes to defence spending and tariffs in 2025.