EU growth to pick up slightly, but industry still facing huge challenges

5 June 2024 - With the European elections only days away, BusinessEurope has today released its Spring Economic Outlook which bolsters our call for a reboot in EU policymaking to ensure Europe’s competitiveness and strengthen its industrial base.

Commenting on the report, BusinessEurope Director General, Markus J. Beyrer noted: "There are signs that growth in the EU economy may bounce back a little this year, with rising real wages and the prospect of lower interest rates both likely to increase demand. But improvements in overall EU output must not distract us from the huge challenges being faced by the industrial sector, particularly as a result of high energy prices and an increasing regulatory burden.

EU industrial output remains barely above pre-Covid levels, with capacity utilisation at its lowest level since 2013 (if the Covid period is excluded). Moreover, 74% of BusinessEurope member federations believe that the business climate for industrial producers has either worsened or shown no improvement over the last 6 months.

EU leaders must use the momentum from the Letta and forthcoming Draghi reports to put competitiveness and the single market at the heart of the next political cycle and develop a long-term European growth strategy."

The report shows that EU businesses now expect the EU economy to grow by 1.2% in 2024, increasing to 1.8% in 2025. This is a 0.4 pp downward revision for 2024 in comparison to our Autumn Economic Outlook.

To read it in full, click here.