We've slightly adjusted our Eurozone forecasts and now project GDP will grow by 0.9% in both 2025 and 2026. Our assumptions about US-EU tariffs have not changed since last month and recent data continue to signal a slow but steady expansion. The balance of risks tilts to the downside as the assumed extension of the 10% US tariff could prove too optimistic. The EU-US negotiations are unlikely to be smooth and the 20% tariff could be reinstated.
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