emirates7 - The European Central Bank (ECB) has issued a warning about a notable slowdown in the global economic outlook over the next two years, mainly due to US tariff hikes and growing uncertainty around international trade policies.
In its June 2025 macroeconomic forecast, the ECB now expects global import growth to reach 3.1 percent in 2025, which is 0.4 percentage points lower than earlier predictions. The outlook for 2026 is even more pessimistic, with growth projected to fall to 1.7 percent—a significant downward revision of 1.4 percentage points.
The ECB links this slowdown to the effects of recent US tariff increases on a range of imports and the overall uncertainty surrounding international trade policies.
However, the ECB also highlighted several positive factors that may help strengthen the eurozone economy and boost its resilience. These include increased government expenditure on defense and infrastructure, higher real household incomes, a robust labor market, and improving conditions for financing.
In its June 2025 macroeconomic forecast, the ECB now expects global import growth to reach 3.1 percent in 2025, which is 0.4 percentage points lower than earlier predictions. The outlook for 2026 is even more pessimistic, with growth projected to fall to 1.7 percent—a significant downward revision of 1.4 percentage points.
The ECB links this slowdown to the effects of recent US tariff increases on a range of imports and the overall uncertainty surrounding international trade policies.
However, the ECB also highlighted several positive factors that may help strengthen the eurozone economy and boost its resilience. These include increased government expenditure on defense and infrastructure, higher real household incomes, a robust labor market, and improving conditions for financing.