Goldman Sachs downgrades forecast for 2025 eurozone GDP growth to 0.8%

Europe’s economy will be hit by the return of Donald Trump as US president, due to the likelihood of new trade tensions with the United States, pressure to raise defense spending and a blow to business confidence due to higher geopolitical risks, Goldman Sachs experts believe.

European companies may also face tariffs, and the impact of trade uncertainty could cause a larger economic hit than the tariffs themselves, according to Goldman Sachs Research.

A team of Goldman Sachs strategists wrote in in a recent note that Trump’s proposed across-the-board tariffs are a clear risk to European exports, though he is expected to impose a more limited set of tariffs on economies, targeting primarily auto exports.

Fibre2Fashion News Desk (DS)