Part 2/10:
Inflation, a primary concern for many economies, has begun to stabilize across Europe, hovering around 2% and predicted to dip slightly below the European Central Bank’s (ECB) target next year. This moderation marks a sharp decline from the inflation peaks experienced last year. Coupled with this, wage growth is expected to slow down modestly but remain above inflation—rising approximately 2%—helping to restore consumers’ purchasing power.
Meanwhile, the labor market has remained resilient, with unemployment forecasted to stay below 6% through 2027. This robust employment outlook supports domestic demand and sustains consumer confidence, bolstering the overall economic outlook despite external headwinds.