The European Union reported a slight decrease in its unemployment rate, which stood at 5.9% in December 2024, down from 6.0% in December 2023. Meanwhile, the annual inflation rate in the EU reached 2.7% in the same month. The figures reflect a stable economic climate as the region continues to navigate post-pandemic recovery challenges. Notably, the Baltic countries—Lithuania, Latvia, and Estonia—have successfully transitioned their electricity supply away from Russia, now relying on the European grid.
The unemployment rate's recent fluctuations show a marginal decrease from November 2024, where it was recorded at 5.8%. This trend suggests a gradual recovery in the job market across the EU, albeit slower than the previous year when the unemployment rate was significantly lower at 3.4%. However, the steady decline over the past year indicates resilience in the labor market despite ongoing economic challenges.
Inflation rates presented a mixed picture across the EU. While seven Member States observed a decrease compared to November 2024, nineteen experienced an increase. Romania and Hungary reported the highest annual inflation rates at 5.5% and 4.8%, respectively. On the other hand, Ireland and Italy enjoyed some of the lowest rates, with Ireland's inflation at a mere 1.0% and Italy's at 1.4%.
In terms of economic growth, the EU's seasonally adjusted GDP showed a modest increase of 0.1% in the fourth quarter of 2024. This follows a more substantial growth of 0.4% recorded in the third quarter of the same year. For the entire year of 2024, initial estimates indicate a GDP growth of 0.8%, highlighting a steady yet cautious expansion of the EU's economy.
Amid these economic developments, the European Commission has made strides toward supporting sustainable initiatives by selecting 39 innovative projects focused on deploying alternative fuels infrastructure across the EU. With a total investment amounting to €422 million, these projects aim to facilitate a transition towards cleaner transport solutions, aligning with the EU's commitment to environmental sustainability.