European Macro Outlook: What's in a Number?

CUSHMAN & WAKEFIELD RESEARCH European Macro Outlook

EURO AREA FORECAST TABLE

2020

2021

2022

2023

2024

2025

Euro Area Economy Real GDP Total Employment

-6.3% -2,618 -292 8.3% 0.3% 0.0% -0.2%

5.3%

3.5%

0.4% -266

2.0%

2.1% 249 307 7.1% 2.0% 2.0% 2.8% 3.4% 1.7% 1.7% 4.8% 6.4% 1.4% 3.6% 4.9% 8.5% 2.4% 2.4% 4.5% 6.9%

3,803 1,160

2,287

232 313 7.1% 2.7% 2.5% 3.0% 3.6% $74.1

Office-using Employment

798

241

Unemployment Rate

7.1% 2.6% 0.0% 0.2% 0.6%

6.6% 8.4% 1.8% 3.0% 4.3%

7.1% 6.2% 3.5% 3.3% 4.1%

CPI Inflation

ECB Policy Rate

10-Year Govt. Bond Yield

BAA Corporate Bond

0.5%

Brent Crude

$45.2

$79.7

$88.7

$85.4

$71.7

Prime Office Sector Rental Growth Capital Value Growth

-0.1%

1.6% 6.4% 3.7%

5.6%

1.1%

1.4%

1.2%

-7.8%

-11.2%

1.1%

Yield

3.9%

4.2%

4.7%

4.8% 5.8%

Total (Unelevered) Return Prime Industrial Sector Rental Growth

4.4% 10.1%

-2.8%

-5.7%

2.1%

3.7%

12.6% -3.6%

3.4%

1.8% 1.8% 5.0% 6.8% 1.9% 1.8% 4.5% 6.3%

Capital Value Growth

11.7% 21.6%

-5.3%

Yield

4.6%

3.9%

4.5% 1.7%

5.0%

Total (Unelevered) Return

15.6% 25.2%

-1.8%

Prime Retail* Sector Rental Growth Capital Value Growth

-10.7% -18.5%

-1.5% 0.4% 3.8% 2.9%

-0.2% -7.0%

-0.1%

-10.0%

Yield

3.8%

4.1%

4.5%

Total (Unelevered) Return

-15.0%

-2.8%

-5.6%

Source: European Commission: Eurostat, European Central Bank, Moody’s Investor Services, Cushman & Wakefield Research Forecasts based on Cushman & Wakefield forecasts as of January 2023.

*Prime High Street

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