US EditionEU executive cuts euro zone growth forecasts because of US trade war
- The European Union revised its growth outlook for the eurozone in 2025 downward to 0.9 percent from an earlier estimate of 1.3 percent, attributing the reduction to escalating global trade uncertainties.
- This downgrade is a response to global trade disruptions caused by the extensive tariffs imposed by the US administration in April on European steel, aluminium, and automobile imports.
- Valdis Dombrovskis, the EU economy chief, indicated that growth in 2025 is anticipated to proceed at a moderate rate, driven by strong employment conditions and increasing wages, despite ongoing downside risks.
- Although inflation declined to 2.2 percent in April and the 2026 forecast was lowered to 1.7 percent, the EU cautioned that renewed global trade disputes might drive inflation back up, while climate-related events like wildfires and floods present additional risks to economic growth.
- With downside risks persisting, the EU needs to implement strong measures to enhance its competitiveness as it confronts the threat of additional tariffs without a trade agreement with Washington.
65 Articles
65 Articles
Brussels Presents Action Plan for 'Terrible Top 10' of Obstacles
By trading more with each other, EU countries can easily erase the damage caused by Trump's trade war and consumer prices can fall. The European Commission will therefore present a new strategy on Wednesday to improve the internal market. The concept plan, obtained by De Telegraaf, shows that Brussels presents a 'terrible top 10' of obstacles that it wants to combat in the coming years. There is good news for Dutch consumers and entrepreneurs.
EU Economy in Plus, only Austria in Descent!
The EU Commission does not see any bright prospects for Austria's economy this year. According to the current forecast of 2025, the gross domestic product (GDP) will shrink for the third year in a row. Austria is the only country that the EU is predicting an economic decline this year. Inflation in Austria remains well above the EU average and the target value of 2 percent, at 2.9 percent. The deficit, too, will significantly exceed the permitte…
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