The Eurozone economy expanded 1.5% in 2025, up from 0.9% in 2024 and exceeding the European Commission’s projection of 1.3%. Economic activity was supported by resilient household consumption, benefiting from lower borrowing costs and easing inflation, a surge in exports to the US as companies stocked up ahead of tariffs under the Trump administration, and stronger-than-expected investment in both equipment and intangible assets. Looking ahead, both the European Commission and the ECB expect growth to moderate to 1.2% in 2026, amid ongoing geopolitical tensions and trade policy uncertainty, before rebounding slightly to 1.4% in 2027.