Regional Economic Outlook for Europe, October 2026
Regional Economic Outlook
Source details
- Canonical URL
- Regional Economic Outlook for Europe, October 2026
Other formats
Growth and macroeconomic outlook
- Europe’s economy "continues to grow, if at a slow pace, despite the energy shock."
- "Growth is fragile, so macroeconomic policies will have to tread carefully."
- "Monetary policy may have to do more, and expansionary fiscal policy should be avoided, to keep pressure off inflation."
- "However, even after energy supply eventually normalizes, Europe’s structural challenges will hold back medium-term growth."
- "At the heart of problem is weak productivity."
Policy prescriptions: reforms for innovation, scale, and resilience
- "Europe should choose higher and more robust growth through reforms for innovation, scale, and resilience."
- "Continuing the energy transition will help build resilience."
- "Advancing single market and national reforms remains the most effective way to raise productivity and lift the constraints on transformative innovation."
Policy guidance for specific country groups
- "As export competition intensifies, CESEE countries should sustain growth through investment in skills and by reforms that improve labor market reallocation, strengthen competition, and foster innovation."
- "EU candidate countries need ambitious reforms to seize the opportunity of accession."
Content in this bundle
- Choosing Growth: Reforms for Innovation, Scale, and Resilience