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18 July | Euro

Eurozone economy holds steady despite US tariff threat — Reuters poll

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Eurozone economy holds steady despite US tariff threat — Reuters poll

A Reuters survey indicates the eurozone economy remains resilient despite potential US tariffs. While the threat of 30% duties on EU goods poses risks, economists expect the European Central Bank (ECB) to keep rates unchanged at 2.0% at its July 24 meeting, potentially pausing its easing cycle.

Growth forecasts remain stable at 1.0% for 2025, 1.2% for 2026, and 1.5% for 2027, with inflation projected to average 2%. Notably, 49 of 84 economists polled anticipate another ECB rate cut, most likely in September.

In Germany, the eurozone's largest economy, expectations remain modest despite infrastructure spending plans. The poll projects GDP growth of just 0.2% this year and 1.2% in 2026, unchanged from previous forecasts.

Elizaveta Kuzmicheva MarketCheese

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