German fiscal growth will not overcome the tariff attraction for the euro area: IMF

According to Alfred Camera, Director of the European Department of the International Fund of the International Fund.

IMF last week reduced the growth forecast for the eurozone, also lowering for Us. UK and Many Asian countries Donald Trump’s voting tariff policy.

The institution reduced its Eurozone growth forecasts for each of the next two years by 0.2 percentage points, to 0.8% in 2025 and 1.2% in 2026.

“These are tariffs and trade tensions weighing on Outlook rather than a positive effect on the financial side,” Caroline CNBC camera in an interview at Bank Bank.

“What we see is a significant decrease for the European economy … And for the euro area countries is twice as much as the two-year period.”

The negative impact of the tariffs will be slightly offset A recent bill on German infrastructureWhat will increase growth in the eurozone over the past two years, said the cameras.

Exceptions were handed to Germany long -standing debt rules Unlocked higher defense costs and allowed to create an infrastructure and climate of 500 billion euros (548 billion dollars). Step was described by economists As the potential of “game change” for the sluggish economy is the largest in the euro area.

However optimism was shocked by tariffs on the US, which is allegedly awaiting Maded global growth and trading streams.

Several politicians at the European Central Bank said CNBC last week That while the inflation path looked positive – with tariffs that potentially increased inflation in the block, further – their wider forecast was much more uncertain.

The IMF cameman said the ECB should only reduce interest rates this year, a quarter of the interest rate, despite the risk of growth.

The ECB has still reduced the rates seven times in a quarter percentage, starting in June 2024. The last step below in April took the deposit, its key rate, up to 2.25%.

“We have a very clear recommendation for the ECB. What we have seen so far is a huge success in the effort of disinflation, and the monetary policy has worked … Therefore, we expect that in the second half of 2025 we expect to hit the inflation goal.”

“Our recommendation is that there is another 25-base in the summer, and then the ECB should contain that 2% political rates, if large shocks were not injured, and there will be a need for repeated monetary policy calibration,” he added.

The index replacement prices over Monday night have been shown by market expectations by two more cuts in a quarter of this year.