EU Lowers Its Growth Forecast. It Could Still Be a Safer Bet Than the U.S.
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European stocks have outperformed U.S. markets this year amid the turmoil caused by President Donald Trump’s tariff threats. The European Commission now expects the combined gross domestic product of the eurozone bloc to increase by 0.9% this year and 1.4% in 2026, an acceleration from the 0.4% growth recorded in 2024. “We must endure a third year of sluggish European growth but German stimulus is setting the scene for an acceleration into 2026/27,” wrote UBS strategist Gerry Fowler in a research note.
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