Bank experts emphasize that GDP growth rates in developed countries will remain low. The main factors limiting investment activity are a high degree of uncertainty and a significant level of public debt. Nevertheless, the development of IT infrastructure will continue to support economic activity. In contrast, large developing economies will be able to demonstrate higher growth rates due to active industrialization and investments in infrastructure.
The US economy is expected to grow by 1.6 percent, although the influencing factors will be mixed. Among the restraining factors:
- increased tariffs;
- high level of public debt;
- complications in immigration legislation.
Among the factors supporting economic activity are:
- tax incentives;
- reorganization of supply chains.
In the eurozone, GDP is forecasted to increase by 1.1 percent, which is related to a decline in external demand and ongoing uncertainty.
As for China, its economy is expected to grow by 4.6 percent, driven by government measures to stimulate domestic demand.
Additionally, the forecast notes that the inflation rate in the US and eurozone will exceed target levels due to rising production costs caused by tariff disputes and the need to reorganize supply chains.
A high degree of economic and geopolitical uncertainty creates additional risks for inflation, as stated in the EDB report.
