After yet another turbulent year for the European economy, many will breathe a sigh of relief, with the prospect of a slightly better year ahead. With inflation easing across the Eurozone and the UK, interest rates continuing to fall, and industrial output showing signs of recovery.
The Eurozone economy expanded by 0.3% quarter-on-quarter in Q4 2025, maintaining the same pace as Q3. This brought annual GDP growth to 1.5% for the year, according to Eurostat. While not robust, this steady growth reflects resilience in the face of global uncertainty and tightening financial conditions earlier in the cycle. Economic growth was driven by the Netherlands and Iberian economies, with Ireland remaining an outlier in terms of GDP growth. Other core European markets (France, Germany, Italy) saw lethargic growth as interest rates and weak industrial output suppressed demand. One key standout among the major European Industrial and Logistics markets is Poland, which is set to continue to see strong economic growth over the next three years.
Read More: Savills UK | The European Logistics market shows signs of stability in 2025, but is it ready for take-off in 2026?
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