The Global Ratings qualification agency reviewed its Eurozone GDP growth by 2025, and reduced it from 1.2% to 0.9%, due to the “uncertainty” created by US tariffs.
The qualification agency S&P Global Ratings reviewed its growth forecast from GDP of the Eurozone for 2025 down. This is explained in a report published on Tuesday and entitled ‘The world is in a limbo’ in which the effects of the effects of the duty that imposed Donald Trump. Thus raised a reduction from 1.2% to 0.9%. However, the agency awaits a substantial recovery from 2026.
Sylvain Broyerchief economist S&P Global Ratings For EMEA, he said: “The economic landscape is uncertain, so we consider several possible scenarios regarding the impact of US tariffs. In a scenario of severe tariffs, Eurozone GDP growth could be limited to 0.5% in 2025 and 1.2% in 2026which would lead to the European Central Bank to cut interest rates more than once this year and to delay its increase beyond our current forecasts. “
In this regard, it should be noted that the European Central Bank could make His last rate cut of the year in Junewith a possible reduction to 2.25%. Increases of fees are expected from the second half of 2026, since the tax stimulus programs will boost growth above their potential. The agency also indicated that “despite the high uncertainty in policy, trust in Europe has begun to recover.”
According to the report, “this rebound is due to the fall in interest rates and inflation, as well as the strength of the labor market”, in addition to The rapid formation of a new government after the elections in Germany and the tax stimulus packages in Germany and EU level could have further strengthened confidence.
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Spain and Germany: what growth perspectives are there
In parallel the S&P raised its growth estimate to Spain for this year to 2.6%one more tenth than previously projected, and placed the 2026 estimate in 2%; in 1.9% in 2027 and in 1.8% in 2028.
As for inflation, the rise in prices in Spain will be 2.5% this year and 2% each of the following two years, while by 2028 the agency anticipates a rate of 1.9%.
Among the economies of the Eurozone, the agency expects that Germany will grow this year 0.3%but it will accelerate its expansion in 2026 to 1.4% and 1.7% in 2027, to moderate 1.6% growth a year later. For its part, the GDP of France It will increase 0.7% this year and 1.1% the following, to reach 1.2% in 2027 and 1.1% in 2028.
Source: Ambito
