European Central Bank Highlights Trade Policy Uncertainty Impact on Economy

According to BlockBeats, the European Central Bank (ECB) has indicated that uncertainty in trade policy is expected to affect investment and exports, with an escalation in trade wars potentially leading to slower economic growth and inflation. Currently, inflation is near the ECB's medium-term target of 2%, and the bank is committed to maintaining inflation at this level. The ECB has not committed to a specific interest rate path. It forecasts a GDP growth rate of 0.9% for 2025, 1.1% for 2026, and 1.3% for 2027. These projections align with the March expectations for 2025 and 2027 but are slightly lower for 2026, which was previously anticipated to be 1.2%. Inflation is projected to be 2.0% in 2025, 1.6% in 2026, and 2.0% in 2027. These figures have been adjusted from March forecasts, which were 2.3% for 2025, 1.9% for 2026, and 2.0% for 2027.