Since the 2023 downturn, the economic recovery has been slow as consumption has remained weak and construction investment fell. Unemployment continued to increase, largely driven by expanding labor supply, while inflation remained contained at around 2 percent. The economy is set to regain momentum in 2026 as private demand recovers, but risks are tilted to the downside, primarily from trade tensions and geoeconomic uncertainty.
International Monetary Fund. European Dept. (Thu,) studied this question.