Eurozone Economy: Stronger Growth, Higher Deficits
Update: 2025-11-17
Description
The Eurozone economy is projected to grow at a faster pace than anticipated, with a 1.3% increase in output predicted for 2025, driven by robust domestic demand. Despite concerns over US tariffs and Trump administration policies, the EUs relative advantage in lower tariffs and a recent rebound in shipments offer some relief. Investment and employment are expected to rise, while wage growth will modestly boost household purchasing power. However, government deficits and debt-to-GDP ratios are set to rise, partly due to increased defense spending.
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