EU Downgrades 2025 Growth Forecasts Amid Trade Uncertainties
The European Commission has slashed its 2025 growth projections for the eurozone to 0.9%, down from November’s 1.3% forecast, citing escalating trade tensions. The broader EU bloc is now expected to expand by just 1.1%, a significant retreat from earlier 1.5% estimates.
Persistent US tariffs—ranging from 10% on general goods to 25% on steel, aluminum, and autos—continue to weigh on European exports. Retaliatory measures by China and other trading partners have compounded the pressure, creating what Commission economists describe as a ’weakening global trade outlook’ with materially depressed export growth.