Live Updates > Live Update Details
2025-09-12 16:24:43
Eurozone Inflation Approaches 2% Target, Economic Growth Remains Stable Amid Tariff Fluctuations: ⑴ The Bank of Finland issued a statement stating that the Eurozone economy remained stable amid tariff fluctuations. While economic growth exceeded expectations, it remained weak overall. ⑵ The ECB's Governing Council decided yesterday to keep key interest rates unchanged, projecting inflation to average 2.1% in 2025, 1.7% in 2026, and 1.9% in 2027. ⑶ Bank of Finland Governor Rehn stated that due to ongoing uncertainty and the inflation outlook being close to target, the Governing Council does not need to urgently adjust interest rates, but will remain vigilant and adopt a meeting-by-meeting approach. ⑷ Geopolitical and trade policy uncertainty will further weaken economic growth, but defense spending and investment could stimulate the economy, particularly in 2026 and 2027. ⑸ While defense spending will increase public debt, the stronger the economic growth it generates, the less pronounced the debt increase. ⑹ Finland's economic recovery is showing a volatile recovery, with economic growth projected at 0.3% in 2025, rising to 1.3% in 2026, and reaching 1.7% in 2027. 7. While the outlook for the corporate sector has improved, subdued household confidence continues to constrain economic growth, and the high unemployment rate will gradually decline starting next year. 8. Factors such as wage growth and low inflation will slowly drive improvements in currently weak household consumption.
