Defense, infrastructure spent to reduce strong 2026 growth in Europe
Scope expects a strong growth in Europe in 2026 as defense spending increases and governments implement measures to increase investment.
Further, the scope looks at the global economy and four adverse factors weighing on the approach to the global credit. First of all, trades that meet the risks of recession for the global economy are on—ups, re-growing and de-skekshalation. Secondly, threats are increasing for financial stability enhanced by the latest wave of the United States -led Financial Deragulation Spear.
Another factors are budgetary challenges that face governments, which trigger more frequent market evaluation of sovereign debt risks. Finally, there are increased geopolitical risks, at least to increase the constant war of Russia in Ukraine and the recent conflict between Israel and Iran.
The rating agency considers high stable-state lending rates compared to the rates prevailing before the cost-living crisis. Many central banks have stopped rate reduction, even though the Federal Reserve and Bank of England can resume them later this year, while Bank of Japan is gradually increasing rates. There is a threat to high lending rates between financial delegulation and improvement in elevated financial-market assessment and current risks to financial stability and global credit conditions.
presentation: Scope’s 2025 Mid-Eyer Economic and Credit Outlook
data: Middle Year 2025 Economic Estimate of Scope
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Dennis shane Macro is the chairman of the Economic Council and leads the global economist of the Scope Group. The rating agency’s macroeconomic council brings together the company’s credit opinion from several issuing sections: sovereign and public sector, financial institutions, corporates, structured finances and project finance.
