Modest Economic Growth for Europe Amid Trade Tensions
The European economy shows signs of recovery with modest growth forecasts despite potential trade risks from new U.S. tariffs under President Trump.
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The European Commission reports that while the EU has exited stagnation, projected growth remains modest at 0.8% for 2023 and 1.3% for 2024. Inflation is expected to stabilize at 2.1%, with consumer purchasing power gradually recovering. However, risks from U.S. trade policy under President-elect Trump loom, as potential tariffs could strain both European and U.S. economies. Germany continues to struggle, with negative growth projected for the current year and a slight recovery forecasted for next year.
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