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Economic Buzz: European Commission cuts Eurozone GDP growth estimate to 0.9% this year from earlier projection of 1.3%
20-May-2025 12:12
Eurozone economic growth outlook was downgraded significantly for 2025 due to the impact of higher trade tariffs and elevated uncertainty, the European Commission said Monday. In its Spring Forecast, it noted that real gross domestic product is likely to grow only 0.9 percent this year, reflecting a sharp downward revision from the autumn forecast of 1.3 percent. The economic growth projection for 2026 was cut to 1.4 percent from 1.6 percent. Consumption will keep expanding and investment will accelerate after rebounding in 2025. It noted that disinflation is set to proceed more swiftly than expected in the prior forecast, with disinflationary factors from ongoing trade tensions outweighing higher food prices and stronger short-term demand pressures.

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