According to a report by Deep Tide TechFlow, the European Commission expects economic growth in the Eurozone to slow down due to the trade war initiated by the United States. GDP growth is projected to be 0.9% in 2025, down from last year's forecast of 1.3%. Growth is expected to accelerate to 1.4% by 2026.
The growth outlook has been significantly downgraded, mainly due to a weakening global trade outlook and rising uncertainty in trade policies. Global trade divergence may slow GDP growth and trigger inflationary pressures. Frequent climate disasters are also a source of downside risks to economic growth. If relations between the EU and the US improve, economic growth may accelerate.