EU inflation forecast to tumble as Brussels warns of looming trade war

euronews (in English)

The European Commission has hailed a 'gradual' rebound in economic activity, but warns the EU is 'especially vulnerable' amid rising geopolitical tensions.

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00:00The EU could see inflation rates fall by over 50% next year amid a modest economic rebound and record low unemployment.

00:10This is according to a European Commission 2025 forecast published on Friday.

00:15The report, however, warned the bloc is especially vulnerable to rising protectionism.

00:21The possible protectionist turn in U.S. trade policy would be extremely harmful for both economies.

00:30And the Commission will work with the incoming U.S. administration to advance a strong transatlantic agenda

00:37and ensure that international trade channels remain open while making them more secure.

00:44According to the report, EU households are still prudently saving rather than spending amid recent shocks.

00:51With fears the Trump presidency may impose tariffs of 10% on imports from places such as the EU,

00:58officials in Brussels say the potential for further flare-ups in global trade is still worrying.

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