European Leading Indicators | GDP growth, interest rates and CRE investment

Here we look at the European leading indicators in the world of economics.

For in-depth analysis into commodities, trade, equities and more with a focus on Europe

Key Insights:

• Economic growth in Europe is forecast to remain uneven in 2026, with Poland and Spain expected to outperform while core markets see softer growth, according to Oxford Economics. Eurozone real GDP is projected to rise by 0.9%, supported by consumer spending.
  
  
• With Eurozone inflation reaching target in December, the ECB is broadly expected to maintain the deposit rate at 2.0% through 2026. However, Capital Economics anticipates two reductions in the second half of the year, reflecting a softer inflation outlook.
  
  
• Renewed confidence is emerging in the office sector, which led investment in Europe (excl. UK) in 2025 with €34.4bn, just ahead of residential, according to preliminary MSCI RCA data. Office transactions above €200mln were up 33% y/y, signalling renewed appetite for larger lot sizes. For further insights on the European office market, read our latest report Offices on the rebound here.