Which European countries have the highest GDP growth forecast in 2026?

Valerie Charoux
Jul 18
3 min read

News Economy Europe – Here are the Top 10 European countries that have the highest GDP growth forecast for 2026, according to the latest KPMG report European Economic Outlook for Spring 2025:

While the average GDP forecast in the Eurozone is expected to increase by around 0.9% in 2025 and 1.1% in 2026, there are a number of countries that are growth hotspots in Europe.

Moreover, increased Defence spending could have positive implications on Europe’s economic activity, adding around 0.3 percentage points to Europe’s GDP by 2030 in the baseline scenario. However, in the front-loaded scenario, KPMG anticipates a temporary surge of spending, which adds as much as 0.9 percentage points in Europe’s GDP for 2027.

Here are the Top 10 European countries that have the highest GDP growth forecast for 2026:

1 – Poland

Poland ranks No. 1 European country that has the highest GDP growth forecast for 2025 and 2026, according to the latest KPMG report.

Poland’s GDP growth forecast for 2025 is 3.3%

Poland’s GDP growth forecast for 2026 is 3.2%

Poland is performing strongly, thanks to robust domestic demand, targeted investment, and solid labor market performance.

2 – Norway

Norway ranks 2nd European country that has the highest GDP growth forecast for 2026, according to the latest KPMG report.

Norway’s GDP growth forecast for 2025 is 1.1%

Norway’s GDP growth forecast for 2026 is 2.6%

3 – Sweden

Sweden ranks 3^rd European country that has the highest GDP growth forecast for 2026, according to the latest KPMG report.

Sweden’s GDP growth forecast for 2025 is 1.9%

Sweden’s GDP growth forecast for 2026 is 2.3%

4 – Portugal

Portugal ranks 4^th European country that has the highest GDP growth forecast for 2026, according to the latest KPMG report.

Portugal’s GDP growth forecast for 2025 is 1.7%

Portugal’s GDP growth forecast for 2026 is 2.3%

5 – Spain

Spain ranks 5^th European country that has the highest GDP growth forecast for 2026, according to the latest KPMG report.

Spain’s GDP growth forecast for 2025 is 2.5%

Spain’s GDP growth forecast for 2026 is 1.8%

Spain is one of the growth hotspots in Europe and Spain’s growth has been driven by resilient domestic demand, strong tourism inflows, and EU-funded investment in infrastructure and green energy. As a result, strong job creation and steady wage growth have helped support consumption despite tighter monetary conditions. However, as tourism spending returns to normal levels and the stimulus from EU-funded investment tapers off, Spain’s outlook is expected to be moderate in the medium term.

6 – Denmark

Denmark ranks 6^th European country that has the highest GDP growth forecast for 2026, according to the latest KPMG report.

Denmark’s GDP growth forecast for 2025 is 2.3%

Denmark’s GDP growth forecast for 2026 is 1.8%

Denmark has shown solid growth helped by the activities of multinational companies and the reopening of the gas deposits at Tyra Field.

7 – Ireland

Ireland ranks 7^th European country that has the highest GDP growth forecast for 2026, according to the latest KPMG report.

Ireland’s GDP growth forecast for 2025 is 3.3%

Ireland’s GDP growth forecast for 2026 is 1.4%

Solid domestic activity and strength in the export of services should continue to support growth in Ireland.

8 – Belgium

Belgium ranks 8^th European country that has the highest GDP growth forecast for 2026, according to the latest KPMG report.

Belgium’s GDP growth forecast for 2025 is 1.0%

Belgium’s GDP growth forecast for 2026 is 1.2%

9 – Switzerland

Switzerland ranks 9^th European country that has the highest GDP growth forecast for 2026, according to the latest KPMG report.

Switzerland’s GDP growth forecast for 2025 is 0.9%

Switzerland’s GDP growth forecast for 2026 is 1.2%

10 – Austria

Austria ranks 10^th European country that has the highest GDP growth forecast for 2026, according to the latest KPMG report.

Austria’s GDP growth forecast for 2025 is -0.1%

Austria’s GDP growth forecast for 2026 is 1.2%

GDP forecasts for Austria for 2026 have been revised upwards, partly due to the potential impact of higher Defence and infrastructure spending in driving momentum in the manufacturing sector.