Economic activity remained robust in 2025. The economy continued to grow steadily at 2.9 percent, driven by domestic demand and supported by wage and pension increases, higher government net spending, and easing financial conditions. The labor market was tight, with high vacancies and rising nominal wages, despite persistently elevated unemployment in part due to skills mismatches. At 3.4 percent, inflation exceeded the euro area average in 2025, driven primarily by services inflation as well as higher excise duties, and has risen further in 2026 following the increase in energy prices [...]