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