News Analysis: Moderate recovery vs mounting risks: what to expect from Europe's economy in 2025


  • World
  • Tuesday, 07 Jan 2025

BERLIN, Jan. 6 (Xinhua) -- Germans welcomed 2025 with renewed hope despite economic challenges, as the country looks toward recovery in the months ahead. The festive spirit over the past week marked a shift in mood, reflecting aspirations for brighter prospects for Europe's largest economy.

After five consecutive quarters of stagnation, the euro area economy saw modest growth in 2024, marked by slow but steady progress. Yet, much like the fleeting brilliance of New Year's Eve fireworks, uncertainty lingers over 2025. Geopolitical tensions, rising protectionism, and mounting pressure from U.S. policies present significant risks, threatening to disrupt Europe's fragile recovery.

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