While Europe has avoided some of the sharper policy and inflationary swings seen in other major economies, it is not without its challenges. The region continues to face geopolitical tensions, a fragmented political landscape, and uneven economic momentum across member states. Nevertheless, Europe’s steady policymaking, gradual labour market reforms, and sustained fiscal support have provided a degree of resilience in a volatile global backdrop. Investment is forecast to rise, manufacturing is beginning to stabilise, and financial conditions are easing in line with lower interest rates. Together, these elements contribute to a more stable credit environment at the sovereign level and offer some macroeconomic ballast in the face of external and domestic headwinds.
European Macroeconomic Landscape: Growth, Politics, and Energy
Europe’s labour markets have shown notable resilience even under trade and geopolitical stress, aided by structural reforms and fiscal buffers. Most forecasts…