Economists have projected a moderate but resilient growth trajectory for Europe in 2026, supported by public investment, improving industrial activity and stable inflation, even as fiscal pressures and geopolitical risks continue to shape the macroeconomic landscape, according to Natixis, a corporate and investment banking firm.

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)

New Balance has announced the launch of the International Baseball Pack, a lineup of performance cleats designed to honor the national pride and heritage of their global baseball athletes. The collection includes country-inspired colorways of New Balance baseball and softball models of Lindor v3, Ohtani v1, 3000 v7, 4040 v8, and Velo v4, each crafted to reflect the colors, symbols, and cultural elements of the athlete’s home countries.

The Puerto Rico-inspired cleat introduces a vibrant new Lindor v3 colorway created with powerhouse shortstop Francisco Lindor featuring a repeating Coquí frog pattern of Puerto Rico’s national animal. The Japan model debuts as an Ohtani v1 colorway honoring Shohei Ohtani and incorporating Japan’s national colors and the Flag of Japan through a navy boot with a striking metallic red New Balance “N” Lock logo.

New Balance has introduced its International Baseball Pack, a series of performance cleats celebrating the heritage of its global athletes.
The collection includes country-inspired versions of the Lindor v3, Ohtani v1, 3000 v7, 4040 v8 and Velo v4.
Designs pay tribute to Francisco Lindor, Shohei Ohtani and others, featuring national colours, symbols and cultural details.

“I wanted the design to honor the spirit of the island I love,” said Francisco Lindor, New Balance athlete. “The Coquí frog’s sound is such an iconic symbol for Puerto Ricans, and bringing that to life on the Lindor v3 makes this cleat truly meaningful to me.”

Additional cleats in the collection include designs celebrating New Balance athletes Cal Raleigh (USA), José Altuve (Venezuela), Jeremy Peña (Dominican Republic), and Ha-Seong Kim (South Korea).

“As fans of baseball first, we have deep appreciation for the distinct styles and rhythm of play that each culture brings to the game,” said Matt Nuzzo, Sr. Product Manager, American Football and Baseball Footwear at New Balance. “The International Baseball Pack celebrates and reflects the pride of our international roster. Being able to celebrate spirit of our athlete’s home countries was incredibly meaningful to us.”

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.

Fibre2Fashion News Desk (RM)

The first round of negotiations for the India-Israel Free Trade Agreement (FTA) has commenced in New Delhi and is scheduled to take place until February 26, 2026. The Terms of Reference (ToR) was signed in November 2025 establishing a structured framework for discussions on identified areas to enhance trade, and economic cooperation.

Total merchandise trade between the two countries stood at $3.62 billion in FY24-25. They share complementarities across several sectors, and the FTA will be a catalyst to further enhance the bilateral trade by providing certainty and predictability to businesses, including micro, small, and medium enterprises (MSMEs), the Ministry of Commerce and Industry said in a press release.

India and Israel have begun the first round of FTA negotiations in New Delhi through February 26, 2026, following the November 2025 ToR signing.
With bilateral trade at $3.62 billion in FY25, talks cover goods, services, rules, SPS, TBT and IPR.
Officials highlighted opportunities in technology and innovation, aiming for a balanced pact to boost trade, supply chains and economic cooperation.

During this round, technical experts from both sides will engage in sessions covering various aspects of FTA such as trade in goods, trade in services, rules of origin, sanitary and phytosanitary measures, technical barriers to trade, customs procedure and trade facilitation, intellectual property rights, among others.

During the opening session, Indian Commerce Secretary, Rajesh Agrawal, underscored that the FTA negotiations had begun at an opportune moment of Prime Minister Narendra Modi’s visit to Israel from February 25-26, 2026.

Agrawal underscored the significant opportunities available to both sides in sectors such as innovation, science and technology, artificial intelligence, cybersecurity, high-tech manufacturing, agriculture, and services. He emphasised that the FTA would enable both countries to harness and fully leverage these opportunities.

Chief Negotiator of India, Ajay Bhadoo, Additional Secretary, Department of Commerce, reiterated the significance of this engagement for the two countries and encouraged both sides to work on a balanced agreement to build a forward-looking framework for an evolving partnership.

Chief Negotiator of Israel for the FTA, Yifat Alon Perel, Senior Director Trade Policy and Agreements and Deputy Trade Commissioner, Foreign Trade Administration, Ministry of Economy and Industry, Israel, expressed that the two countries shared a close relationship, and that the FTA has the potential to strengthen supply chains, enhance cooperation and open new markets for both countries.

This engagement highlighted the strategic importance of India-Israel bilateral relationship and reinforces India’s commitment to strengthen economic partnerships in line with national priorities and global aspirations. Both sides are working towards concluding a balanced and mutually beneficial agreement, added the release.

Fibre2Fashion News Desk (SG)