Goldman Sachs – Euro Area Outlook 2026: Cyclical Boost, Structural Headwinds

This report provides an economic outlook for the Euro area in 2026, focusing on cyclical improvements and structural challenges.

It forecasts modest growth driven by Germany’s fiscal stimulus, easing global trade tensions, and strong consumer spending, while highlighting structural headwinds such as increased competition from China, high energy costs, underinvestment in technology, regulatory burdens, and demographic shifts. Labour markets remain stable, inflation is expected to align with the 2% target, and interest rates are likely to stay on hold unless economic conditions worsen.