AIECE Publishes General Report. "EU GDP to grow by of 1.2 percent in 2025 and 1.5 percent in 2026"

Marcus Scheiblecker

The AIECE Spring meeting took place on 15 and 16 May 2025 at Statistics Norway (Oslo). © AIECE

23.05.2025

AIECE Publishes General Report

"EU GDP to grow by of 1.2 percent in 2025 and 1.5 percent in 2026"

The AIECE Association of European Economic Research Institutes has published its bi-annual General Report, following the Spring 2025 Meeting held in Oslo hosted by Statistics Norway. The AIECE has around 40 member institutes and observers representing 19 countries and 5 international organisations – Austria is represented exclusively by WIFO.

On average, AIECE member institutes forecast EU GDP to grow by of 1.2 percent in 2025 and 1.5 percent in 2026. The forecast for Euro Area GDP growth is 1.0 and 1,3 percent. These forecasts are a bit more optimistic than those presented in the OECD's March 2025 Interim Report and the IMF's Spring 2025 World Economic Outlook.

The AIECE General Report for Spring 2025 highlights weak global growth amid substantial uncertainty driven by geopolitical conflicts and unpredictable trade policy in the USA. Enhancing European competitiveness through investments in sustainability, digital infrastructure, and strategic sectors is seen as essential.

The AIECE convenes twice a year to exchange views on the economic outlook for European economies and discuss economic policy as well as structural economic developments. The AIECE serves as one of the few independent forums where the economic prospects of Europe are regularly and systematically assessed.

"Concerning fiscal policy in the EU, the majority of members oppose loosening fiscal rules for the purpose of increasing spending on climate protection. However, opinions are divided on whether the rules should be relaxed to allow for greater defense spending," says WIFO Senior Economist Marcus Scheiblecker, who attended the AIECE Spring Meeting in Oslo.