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Europe Sees Modest Growth, but the Weaker US Dollar Looms as a Threat
- On Friday, Eurostat reported eurozone quarter‑on‑quarter growth of 0.3% for the last three months of 2025, and annual growth reached 15%.
- Market moves show the dollar weakening amid fears that U.S. tariff threats and attacks on U.S. Federal Reserve Chair Jerome Powell undermine its role, while the euro rose 14.4% to $1.19 on Friday.
- Sector surveys indicated that S&P Global reports moderate growth in European services businesses, despite Germany's 0.2% last year and France's 0.9% growth.
- A stronger euro could weigh on European exporters’ competitiveness, and analysts say prolonged dollar weakness could prompt the European Central Bank to cut rates later this year, though Thursday’s meeting is unlikely to change policy.
- Talks settled on a 15% cap on U.S. tariffs, EU leaders will meet next month in Belgium, and U.S. President Donald Trump threatened higher tariffs on Jan. 17 before withdrawing the threat.
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The dollar is getting weaker and weaker, which is a problem for Europe.
·Frankfurt, Germany
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Germany’s Economy Minister, Katherina Reiche, emphasized the need to pivot toward emerging sectors to sustain growth, noting that traditional export-driven industries “no longer carry our growth” as they once did. Europe’s largest economy recently lowered its growth forecast for 2026 to 1.0% from 1.3%, citing global trade uncertainties and delayed effects of economic and fiscal […] The post Germany Eyes New “Growth Engines” as Economic Forecasts…
This year, Europeans will get a discount on travel to the United States, but their jobs could become even more uncertain.
Coverage Details
Total News Sources54
Leaning Left9Leaning Right8Center14Last UpdatedBias Distribution45% Center
Bias Distribution
- 45% of the sources are Center
45% Center
L 29%
C 45%
R 26%
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