Global Economic Outlook: US, Europe Grow More Slowly Than Expected Amid Trade, Geopolitical Tensions

*Changes in compared to the global economic outlook forecast of October 2024. Negative growth rate presented in brackets. Source: Scope rating forecasting, regional and national statistical offices, IMF.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…

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UK Economic Risks and Fiscal Pressures Intensify

There is also negative risk for the government’s fiscal and macroeconomic forecasts, there is a possibility that the Chancellor of the excarker may need to further adjust its policies in the upcoming autumn budget. Market expectations already reflect the possibility of additional tax measures, which can reduce the economy. The ‘mutual’ American tariff announcements are…

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European Rearmament Plans: National Policy Choices Will Shape Fiscal Impact

Relying on debt-funded military expenses will weaken the credit approach of France and the UK, but a combination of limited fiscal flexibility and high bond yields can encourage the two governments to make necessary budgetary adjustments. In addition, Germany’s fiscal stimulus may have a favorable widespread impact on development, which will help soften the permanent…

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