The EU downgrades 2025 growth forecasts due to tariff uncertainties

The European Commission has lowered its growth projections for 2025 to 0.9% for the euro area and 1.1% for the entire EU, citing persistent U.S. Tariffs on goods that impede trade.

Ongoing trade tensions contribute to a dim export outlook. However, a declining unemployment rate and stabilizing inflation indicate some potential for economic recovery.