The European Commission’s Autumn 2025 Economic Forecast shows that “growth in the first three quarters of 2025 outperformed expectations”. As he presented the Economic Forecast in Brussels today, the Commissioner for Economy and Productivity, Valdis Dombrovskis, stated: “while the strong performance was initially driven by a surge in exports in anticipation of tariff increases, the EU economy continued to grow in the third quarter”. Looking ahead, “economic activity is expected to continue expanding at a moderate pace over the forecast horizon, despite a challenging external environment”. This year’s Autumn Forecast projects real GDP to grow by 1.4% in the EU in 2025 and 2026, edging up to 1.5% in 2027. The euro area is expected to mirror this trend, with real GDP projected to grow by 1.3% in 2025, 1.2% in 2026, and 1.4% in 2027. Inflation in the euro area is forecast to continue its decline, falling to 2.1% in 2025, and to hover around 2%. In the EU, inflation is set to remain marginally higher, falling to 2.2% in 2027. Valdis Dombrovskis said: “Even in an adverse environment, the EU’s economy has continued to grow. Now, given the challenging external context, the EU must take resolute action to unlock domestic growth. This means accelerating our work on the competitiveness agenda, including by simplifying regulation, completing the Single Market, and boosting innovation”.