June 20, 2025
Global Economic Outlook: Us, Europe Grow More Slowly than Expectored Amid Trade, Geoplitical Tensions thumbnail
Business

Global Economic Outlook: Us, Europe Grow More Slowly than Expectored Amid Trade, Geoplitical Tensions

The US and Europe Economies Willies Will Expand More Slowly in 2025 than Previoously Forecast, Contribution to More Moderate Global Economic Growth, With Risks For The Global Economy Skewed Toved Toved Toowed Toved Tov Says.”, – WRITE: www.fxempire.com

Medium-Term Macro Risks Remain Negatively Skewed. Scope Projects That Interest Rats Will Remain Above the Pre-Pandemic Levels Amid Structurally Higher Inflation.

The Cut to Us Growth Forecasts for this year comes amid trade uncertainties and cuts in government spending by the department of government efficiency.

Germany to Recover After Consecutive Years of Stagnant Growth by 2026 As Regards Germany, Scope Forecasts No Growth This Year Compared With A Forecast Last October of 0.9% – The Economy Contracted 0.2% in 2024 NEXT YEAR.

Germany’s Sluggish Performance This Year Will Drag European-Arena Growth to a less-Qan-Exectoned 1.1%, 0.5ps Below Scope Ratings’ Former Forecast, Before%.

Spain and Economies of the European-Arena Periphary-Such as Greece, Ireland, Portugal-Continue to Outperform The Rest of the Euro Area. Spain’s Forecast Growth This Year of 2.5%, Revised Up By 0.3pps, Contrast with France’s of 0.7%, Cut 0.6pps, and Italy’s of 0.6%, Revised Down by 0.4pps.

Table 1: Scope Ratings’ Growth Forecsts, Summary

*Changes Compared with October 2024’s Global Economic Outlook Forecasting. Negative Growth Rates Presited in Parentheses. Source: Scope Ratings Forecasts, Regional and National Statical Offices, IMF. Defense, Infrastructure Spending to Underpin Stronger 2026 Growth in Europe Scope Expects Stronger Growth in Europe in 2026 as Defense Spending Rises and Governments Implement Measures to Increase Investment.

Looking Ahead, Scope Sees Four Adverse Factors Weighting on the Outlook for the Global Economy and Global Credit. FIRST, there is the on-again, Off-Aagain escalations and de-escalactions of the trade tensions posing recessionary Risks for the Global Economy. Secondly, Threats Are Increase for Financial Stability Amplified by the Latest Wave of Financial Deregulation Spear Headed by the United States.

Another Factor is the Budgetary Challenges that Governments Face, Triggering More Frequent Market Re-Appraisals of Sovereign Debt Risks. Finally, there are heigheted geopolitical risks, not least Russia’s Continuing War in Ukraine and the Recent Escalation of Conflict Between Israel An Iran.

The rating agency assumes Higher Steady-State Borrowing Rates Who Rates that Prevailed Before The Cost-Off-Living Crisis. Many Central Banks have paused Rate Reductions, Even if the Federal Reserve and Bank of England May Resume Them Later this Year Whereas The Bank of Japan is Gradual Increasing Rates. Sustaned Higher Borrowing Rates and Elegated Financial-Market Valuations Amid Financial Deregulation Threaten Corrections and Present Risks for Financial Stability and Global Credit Credit Credit Credit Cerdit.

Presentation: Scope’s 2025 MID-YEAR ECONOMIC AND Credit Outlook

Data: Scope’s Mid-Year 2025 Economic Projects

For a look at all of today’s Economic Events, Check Out Our Economic Calendar.

Dennis shen Is The Chair of the Macro Economic Council and Lead Global Economist of Scope Group. The Rating Agency’s Macroeconomic Council Brings Together The Company’s Credit Opinions from Multiple Issuer Classes: Sovereign and Public Sector, Fincial Institute, Corporate Finance.

Related posts

China Retail Sales Rebound As Industrial Production Slows; Hang Seng Index Steadies

unian ua

Metaplanet Overtakes Coinbase With 10k BTC, Becomes No. 9 Bitcoin Holder

unian ua

Flashbots: Mev brakes the scaling of blockchains

unian ua

Leave a Comment

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More