KENT NISHIMURA / EPA
According to the IMF, the world economy is expected to reach this year the lowest pace of the last two decades. Meanwhile, the main companies in the eurozone are suspending investments due to the uncertainty about the tariffs imposed by Donald Trump.
The European Central Bank (ECB) said on Tuesday that the main companies in the euro zone are Suspend investments because of Trump.
Contacts made by the ECB took place with representatives of 79 Eurozone Leady companies between March 17 and 26, before the US President announced new tariffs on March 26 and.
“Many companies service providers (including employment, IT and consulting services) said that Customers are postponing large projectstaking into account the current uncertainty about the tariffs, ”said the ECB.
The search for passenger cars is stagnar and will remain low or will only grow moderately in the short term, according to the main companies in the eurozone.
Still, many companies will wait to see what will happen to tariffs or are skeptical about their introduction or duration, according to the results of these contacts.
USA particularly ‘punished’
Companies believe that tariffs will have negative effects especially on US consumers.
In addition, they maintain that this trump mechanism goes discourage major investments in the USAsince companies will hesitate to make long -term decisions.
“The main impact of tariff ads so far has been leading companies to suspend some investments and evaluate their dependence on US production factors,” according to the ECB.
Companies that “reevaluated their perspectives given current or planned rates expected a reduction in activity and, in general, higher prices,” warns the monetary institution.
As for the announcement of the increase in defense expenses in Germany and the entire European Union (EU), companies expect them to have a positive impact on economic activity.
Economic growth in question
The International Monetary Fund (IMF) has reviewed its predictions for the growth of the world economy this year to 2,8% against 3.3% which he had pointed out in January, before Trump’s tariffs.
Will be the lower growth in the last 23 years.
According to the World Economic Outlook (Weo), published on Tuesday, to 2026, the IMF estimates a growth of 3%, less than 3.3% that also estimated in January.
“The rapid climb of commercial tensions and extremely high levels of political uncertainty should have a significant impact on world economic activity,” he said in the document.
The IMF projects that growth in advanced economies is 1.4% in 2025, estimating that “growth in the United States loan to 1.8%”, a lower percentage value “to the Weo January 2025 update due to greater political uncertainty, commercial tensions and the lowest demand dynamics”.
Already the growth in the euro area of 0.8%, should slow 0.2 percentage points, in view of the estimated in January. Within doors, the IMF reviews in low growth in the Portuguese GDP to 2%this year
In emerging and developing markets, growth should “slow down to 3.7% in 2025 and 3.9% in 2026, with significant descents for countries most affected by recent commercial measures such as China,” he warned.
