Eurozone: Financial momentum suggests robust expansion – Commerzbank

Commerzbank Unveils New Financial Impulse Indicator

Dr. Marco Wagner from Commerzbank has presented a fresh financial impulse indicator, inspired by the Federal Reserve’s FCI-G model. This tool measures the extent to which financial conditions are either accelerating or restraining economic momentum. According to the latest readings, the indicator points to robust support for economic expansion within the Eurozone. Commerzbank anticipates that the region’s economy will grow by approximately 1% in both 2026 and 2027.

Ongoing Positive Momentum for the Eurozone

The European Central Bank is in the process of developing its own Macro-Finance Financial Conditions Index (MF-FCI). In the meantime, Commerzbank has crafted a similar gauge, drawing on the Federal Reserve’s recently introduced Financial Conditions Indicator for US Growth.

Findings from Commerzbank’s financial impulse indicator reveal that current financial conditions are providing a significant lift to the Eurozone economy this year.

• Favorable financing conditions are expected to persist into 2026.
• This supportive environment is likely to remain largely unchanged through 2027.
• Commerzbank also forecasts continued increases in both house prices and equity markets.

In summary, the outlook calls for steady economic growth of about 1% across the Eurozone for both 2026 and 2027.

(This report was produced with assistance from artificial intelligence and subsequently reviewed by an editor.)