S&P Global has lowered its growth forecast for the Eurozone, anticipating an interest rate hike from the ECB in 2026.

Foreks - S&P Global has lowered its GDP growth forecast for the Eurozone in 2025 from 1.2% to 0.9% due to uncertainty and U.S. tariffs. However, it emphasized that significant recovery is expected starting in 2026, thanks to fiscal stimulus measures in Germany and the EU.

S&P Global Ratings' Chief Economist for the EMEA region, Sylvain Broyer, stated, "The economic outlook is uncertain, so we are evaluating several scenarios regarding the impact of U.S. tariffs." He noted that in a severe tariff scenario, GDP growth in the Eurozone could be limited to 0.5% in 2025 and 1.2% in 2026, as the European Central Bank may lower interest rates multiple times this year and raise them later than currently anticipated. S&P also highlighted that with interest rates potentially dropping to 2.25% by June, they expect rate hikes as early as the second half of 2026, driven by fiscal stimulus programs exceeding growth potential.