EU Faces Economic Uncertainty with Trump Presidency Looming

The European Commission warns of potential trade tensions as it revises growth forecasts for the Eurozone.

The European Commission has adjusted its growth forecast for the Eurozone to 0.8% for 2024 and 1.3% for 2025, reflecting cautious optimism amid geopolitical uncertainties.
Germany is expected to experience a slight economic contraction of 0.1% in 2024, with a modest recovery projected at 0.7% growth in 2025.
Inflation rates in the Eurozone are anticipated to decrease, aligning closer to the European Central Bank's target of 2% by 2025.
The potential for a trade conflict with the United States under Donald Trump's presidency poses a significant risk to EU economies, particularly impacting Germany and Italy.
EU officials emphasize the need for structural reforms and investment to enhance competitiveness and navigate geopolitical challenges.