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Industry - Country Industry Forecasts - Eurozone

Publisher Oxford Economics
Published Sep 19, 2025
Length 26 Pages
SKU # OFE20418491

Description

Industrial value-added output is forecast to grow 2.1% in 2025 and 0.2% in 2026. While the year began on a strong note driven by tariff front-loading, we expect businesses to remain cautious about investment because of softer global demand. Businesses are likely waiting to see if EU domestic demand can offset the losses of lower exports. The eurozone’s net trade contribution has turned negative in Q2 2025 as US tariffs and weaker Chinese demand weighed on exports, while domestic consumption has yet to show a sustained recovery. Although upcoming ECB rate cuts and fiscal support could lift demand, their effects will likely materialise only gradually, keeping the short-term outlook muted.

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