In a move that’s capturing global attention, the European Commission has sharply downgraded its eurozone growth forecast for 2025. Originally set at 1.3%, the projection has been trimmed to just 0.9%, reflecting the pressures of intensified trade tensions sparked by U.S. President Donald Trump’s sweeping tariffs.
These tariffs, which include 25% levies on steel, aluminum, and auto imports, along with a baseline 10% tariff on a wide range of goods, have added a layer of uncertainty to global trade. Even Germany, the EU's economic powerhouse, is expected to see zero growth in 2025—a significant revision from last year's forecast of 0.7%.
EU economy chief Valdis Dombrovskis emphasized that, despite the headwinds, a robust labor market and rising wages should help sustain growth at a moderate pace. However, the revised outlook for 2026 too has been adjusted downward from 1.6% to 1.4%.
This shift also marks a strategic pivot for the EU. After focusing on climate change, the commission is now sharpening its efforts on boosting competitiveness, aiming to ease business challenges amid fierce competition from Chinese and American firms. 🚀 For young entrepreneurs, professionals, and curious minds alike, these developments underscore the evolving global economic landscape that directly impacts future markets and opportunities.
Reference(s):
cgtn.com
