Tariffs and defence spending: S&P Global slashes eurozone and UK growth forecast

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Tariffs and defence spending: S&P Global slashes eurozone and UK growth forecast

^{Published on 2025-03-29 06:22:39 - Euronews}

Uncertainty around US trade tariffs is costing the eurozone and the UK economy billions this year and the next, which cannot be entirely offset by increased defence spending in 2025. View on euronews

S&P Global has significantly downgraded its growth forecasts for the Eurozone and the UK, citing a combination of factors including higher tariffs, increased defense spending, and the ongoing effects of the energy crisis. The agency now expects the Eurozone's GDP to grow by just 0.6% in 2023, a sharp decrease from the previously anticipated 1.4%. Similarly, the UK's growth forecast for 2023 has been revised down to 0.3% from an earlier estimate of 1.3%. These revisions reflect concerns over persistent inflation, the economic impact of sanctions related to geopolitical tensions, particularly with Russia, and the resultant increase in defense expenditures. Additionally, the report highlights the potential for further economic strain due to the possibility of new trade barriers and the ongoing recovery from the energy price shocks.

Read the Full Euronews Article at:
[ https://www.msn.com/en-us/money/economy/tariffs-and-defence-spending-s-p-global-slashes-eurozone-and-uk-growth-forecast/ar-AA1BT5BJ ]

N@N

Tariffs and defence spending: S&P Global slashes eurozone and UK growth forecast