Analysts at the EDB highlight that GDP growth in developed economies will remain modest, due to high uncertainty and debt levels that hinder investment activity. Nevertheless, the development of IT infrastructure continues to have a positive impact on the economy. At the same time, developing economies will demonstrate higher growth rates due to industrialization and investments in infrastructure projects.
The forecast also indicates that economic growth in the United States is expected to be at 1.6 percent, despite the influence of mixed factors. Barriers to growth include:
- increased tariffs;
- high levels of public debt;
- tightening immigration legislation.
However, economic activity will be supported by:
- tax incentives;
- restructuring of supply chains.
In the Eurozone, GDP is projected to increase by 1.1 percent, occurring against a backdrop of declining external demand and overall uncertainty.
China's economy is forecasted to grow by 4.6 percent, driven by government measures to stimulate domestic demand.
The forecast also emphasizes that inflation in the U.S. and Eurozone will remain above target levels due to rising production costs caused by tariff conflicts and the need to reorganize supply chains.
A high degree of economic and geopolitical uncertainty creates additional inflation risks, as noted in the EDB forecast.
