Following Donald Trump's re-election, investment bank Goldman Sachs has cut its growth forecasts for the European economy, warning of the negative consequences of Trump's protectionist policies. These policies, including high tariffs, could damage the economic situation in Europe, according to the bank, with Germany, which is facing an economic crisis, particularly affected.
Growth forecast and trade tensions
Goldman Sachs expects the gross domestic product (GDP) of the countries that use the euro to grow by only 0.8% next year, down sharply from an earlier estimate of 1.1%. This decline is mainly due to increased uncertainty over trade policy. The bank's experts argue that while tariffs may increase, it is the uncertainty caused by Trump's threats regarding tariff barriers that is having a far greater impact. Europe, with its open economy, is particularly vulnerable to these changes.
Trump's policy of promising high tariffs on imported goods, and his confrontational approach to trade…