CONFIDENCE GROWS STRONGER IN EUROPE 1/3

30 Jun

CONFIDENCE GROWS STRONGER IN EUROPE 1/3

The Eurozone started 2025 on a better-than-expected note, with GDP growth of +0.3% in Q1. While modest, this figure marks a slight acceleration from the previous quarter, largely driven by inventory changes and a surprising recovery in Germany. This growth performance stands in contrast to the contraction seen in the U.S. economy during the same period.

Key Points

  • Economic conditions continue to improve in Europe
  • Positive momentum continues in 2nd half
  • Leading indicators remain moderately optimistic
  • Household confidence set to improve
  • Inflation falls back below ECB target (+2%)
  • ECB to cut rates below 2%
  • Positive but moderate outlook for eurozone bond markets
  • Euro benefits from renewed confidence
  • Securitized real estate benefits from lower rates
  • Return of uncertainty for equities over the summer months