European Economics Analyst: 10 Questions for 2025

Goldman Sachs Research forecasts Euro area growth of 0.8% this year, below the Bloomberg consensus of 1%. This reflects expectation for continued structural headwinds in the manufacturing sector, ongoing fiscal drag and the consequences of trade tensions under the Trump administration. That said, analysts see continued subdued growth, rather than a Euro area recession, given rising real household incomes and ongoing economic resilience in the South.