The economy in the European Union (EU) exceeded expectations in early 2025. In its latest business forecast, the European Commission announced that the economy has started more than expected.
According to the update, the economy is expected to grow slowly and accelerate in 2026. The gross domestic product in the EU is expected to increase by 1.1 percent in 2025 and 1.5 percent 2026.
Due to the global market conditions, EU exports are expected to grow only by 0.7 percent. However, the European Commission expects an increase of 2.1 percent in 2026.
The Commission points out that there is increased uncertainty due to the global trade voltages and climate -related disasters. These are risks to the growth of the European economy. The Commission therefore writes that the defusing of trade voltages between the USA and the EU, the expansion of trade, higher defense spending and reforms of the market are important to increase competitiveness in order to support the growth and resistance of the European economy.
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