Overview
- S&P Global Ratings has lowered 2025-26 GDP growth forecasts, including a 60bps cut for the U.S. and similar reductions for Canada and Mexico.
- India's growth projection is reduced to 6.3% for 2025-26, with China, Japan, and emerging Asia-Pacific economies also seeing significant downgrades.
- The Eurozone's GDP forecast is down by 0.2 percentage points, with Germany facing the largest impact among its major economies.
- U.S. inflation forecasts have been raised, but S&P does not currently anticipate a recession despite elevated risks and market volatility.
- The report emphasizes the unpredictability of U.S. trade policy and its ripple effects on global supply chains and economic stability.