Fashion
Europe growth to stay steady amid investment push in 2026: Natixis
Industrial production accelerated in the second half of 2025, contributing to the creation of 1.12 million jobs and pushing unemployment down to 6.2 per cent. Record disbursements from the EU Recovery and Resilience Facility, which reached €86 billion (~$101.48 billion) by end-2025, also supported investment and labour market strength, Natixis said in a press release.
Trade dynamics remain mixed. While EU goods exports rose 3.5 per cent, the increase was largely influenced by Ireland, with exports excluding Ireland declining 5 per cent. Exports to China continued to contract, reflecting structural market share erosion. Nevertheless, new trade agreements with Mercosur and India and expanding intra-EU trade are expected to partly offset external headwinds.
Natixis expects Europe to record moderate but resilient growth in 2026, supported by public investment, industrial recovery and stable inflation.
EU exports show mixed trends, while quarterly growth is forecast at 0.3-0.4 per cent.
Germany and Iberia are set to outperform, Italy may lag, and Central Europe remains resilient.
UK growth is projected to soften as inflation moves towards target.
Natixis forecasts quarterly EU growth of 0.3-0.4 per cent throughout 2026, underpinned by strong labour markets, higher industrial production and supportive monetary conditions following European Central Bank (ECB) rate cuts. However, fiscal expansion aimed at defence, green energy and digital infrastructure is placing pressure on public finances, with debt ratios projected to reach 119 per cent in France, 132 per cent in Italy and 110 per cent in Belgium by 2027, while Germany and the Netherlands retain greater fiscal flexibility.
Inflation across the euro area is expected to remain near target at around 1.9 per cent in 2026, rising slightly to 2 per cent in 2027, allowing the ECB to maintain rates with a dovish bias. Natixis indicated that a stronger euro, particularly above 1.25 against the US dollar, could prompt rate cuts to preserve competitiveness.
Country-level outlooks point to divergent performance. Germany is positioned for stronger growth following a major fiscal package, supported by rising manufacturing orders and wage increases that should bolster consumption. France is expected to see growth improve to 1.1 per cent in 2026 after political uncertainty weighed on performance, though US tariffs have affected key export sectors such as wine and cosmetics.
Southern Europe shows a two-speed pattern, with Spain and Portugal projected to expand above 2 per cent, supported by robust labour markets, low inflation and effective use of EU funds. Italy is forecast to grow 0.9 per cent, constrained by weak domestic demand and high interest costs. Debt reduction progress is most notable in Portugal and Spain, while Italy faces persistent structural challenges.
Central Europe is emerging as another area of resilience. Poland, the Czech Republic and Hungary are benefiting from strong domestic demand and real wage growth of 7-11 per cent, driven partly by Recovery and Resilience Plan investments. Poland is expected to grow 3.5 per cent in 2026, while Hungary’s growth could accelerate if political developments unlock suspended EU funds.
In the UK, growth is projected to ease from 1.3 per cent in 2025 to 1.1 per cent in 2026 amid softer trade and labour market conditions. Inflation is expected to return to the 2 per cent target by spring 2026, supporting expectations of at least two Bank of England rate cuts during the year.
Fibre2Fashion News Desk (SG)
China will step up building a higher-level China-Vietnam community with a shared future that carries strategic significance, Chinese President Xi Jinping said while holding talks with visiting Vietnamese President To Lam.
China and Vietnam are accelerating efforts to navigate bilateral trade towards a more balanced and sustainable course.
President Xi Jinping recently held talks with visiting Vietnamese President To Lam.
During the visit, Vietnamese Minister of Industry and Trade Le Manh Hung called for a restructuring of production, trade and supply chains alongside stronger investment cooperation.
Xi said both countries should work together in their modernisation drive, accelerate the alignment of development strategies and prioritise infrastructure connectivity.
While meeting Chinese Minister of Commerce Wang Wentao during the state visit, Vietnamese Minister of Industry and Trade Le Manh Hung called for a restructuring of production, trade and supply chains alongside stronger investment cooperation.
Wang said both sides should focus on implementing the high-level common perceptions, including raising bilateral trade turnover to $500 billion in future.
Hung urged China to expand imports of Vietnamese goods, broaden the list of products eligible for tariff preferences and further open its market. He also called for the mutual recognition of quarantine results for agro-forestry-fishery products, facilitation of Vietnamese exports via cross-border e-commerce, and expansion of Vietnam’s trade promotion offices across Chinese localities, according to a Vietnamese news agency.
China will continue to support Vietnam in setting up additional trade promotion offices, following those already established in Chongqing, Hangzhou and Haikou, Wang responded.
China also expressed readiness to support Vietnam’s stronger exports through cross-border e-commerce, encouraging greater visibility of the Vietnam National Pavilion on Chinese e-commerce platforms beyond JD.com to better promote Vietnamese products to Chinese consumers.
China has consistently been Vietnam’s largest trading partner and second-largest export market, while Vietnam continues to be China’s biggest trading partner in the Association of Southeast Asian Nations (ASEAN).
Fibre2Fashion News Desk (DS)
British actors Simone Ashley and Tom Blyth star alongside models Alva Claire, Babacar N’Doye and Sacha Quenby and a cast of synchronised swimmers and divers.
Burberry’s High Summer 2026 campaign captures Britain’s nostalgic lido culture through a sunlit film featuring Simone Ashley and Tom Blyth.
Blending heritage check with pastel tones, the collection spans swimwear, relaxed tailoring, raffia bags and lightweight layers, evoking effortless, poolside summer style.
Directed by Francis Plummer, the campaign reflects a warm, communal British summer mood.
The campaign film is directed by Francis Plummer and shot by photographer Ryan McGinley. The cameras move from loungers to diving boards, catching mid-air dives and friends stretched out in the hazy afternoon light. Before long, the best spots by the pool are claimed with a Burberry towel. Summer has begun. The film is underscored by the TONE remix of ‘Beating’ by Tirzah.
‘A lido holds a particular kind of nostalgia for the British. The moment the sun comes out, we make the most of the weather. We wanted to bring to life a warm summer’s day spent in and around the water’s edge with friends.’ said Daniel Lee Chief Creative Officer, Burberry.
Key styles
The High Summer 2026 collection features the Burberry Check in heritage-inspired sand beige and pastel shades of aubergine purple and cornflower blue.
The iconic Burberry Check bikini is the beach essential, alongside matching swimsuits and men’s swim shorts trimmed with check.
Poolside separates include tops, skirts and shirts cut from cotton voile, plus cover-up dresses woven with a tonal Burberry Check and deckchair-inspired stripes. Ruffled trims and ties at the neckline capture the floaty, effortless feel of the collection. Festival
tank tops in ribbed cotton jersey are trimmed with check straps, while looks are wrapped in lightweight wool silk scarves.
For men, collared shirts and shorts are tailored to relaxed lines and finished with fresh interpretations of the Burberry Check, from textural weaves to intricate embroidered designs. The co-ord set is crafted from lightweight cotton poplin printed with a playful seahorse pattern in honeysuckle pink.
The classic cotton piqué polo shirt comes in a spectrum of vivid and neutral colours. Burberry Check is subtly placed at the placket and trims the collar of T-shirts in soft cotton jersey.
Lightweight hooded jackets are ideal for cooler evenings and unexpected showers, the new-season designs woven in aubergine purple and cornflower blue check.
In shoes, the new Knight Runner sneakers offer a streamlined, low-profile shape for summer. Sandals are elevated in the form of the whipstitched leather Baez and check-trimmed suede Urchin styles, while Burberry Check slides and Pavilion sandals are made for the beach.
Lightweight Margate bags are handcrafted in Madagascar from locally sourced raffia palm leaves, dyed in signature sand beige Burberry Check. Accessories include crocheted bucket hats and wraparound sunglasses, designed to shield from the sun.
Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged.
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