EADB experts note that GDP growth in developed countries will remain at a low level. High levels of debt and uncertainty are holding back investments; however, the development of IT infrastructure continues to support the economy. At the same time, countries with developing economies will be able to achieve higher growth rates due to active industrialization and investments in infrastructure.
In particular, the US economy is expected to grow by 1.6 percent, despite the influence of various factors that could slow growth:
- increased tariffs;
- high levels of government debt;
- tightening of immigration policy.
Nevertheless, economic activity will be supported by:
- tax incentives;
- optimization of supply chains.
In the eurozone, GDP growth is forecasted at 1.1 percent, which is related to a decline in external demand and ongoing uncertainty.
The Chinese economy, in turn, may grow by 4.6 percent due to government measures aimed at stimulating domestic demand.
The forecast also indicates that inflation in the US and the eurozone will exceed target levels due to rising production costs caused by tariff conflicts and the need to reorganize supply chains.
A high degree of geopolitical and economic uncertainty creates additional risks for inflation, as emphasized in the EADB report.
