UBS Slashes Global Growth Forecast Amid Trump’s Ta…
From Financial Modeling Prep: 2025-04-23 02:36:00
UBS revises global growth forecast due to Trump’s tariffs, predicting MSCI AC World GDP to slow sharply over the next two years.
Global GDP outlook for 2025 cut to 2.5%, with further slowdown to 2.3% in 2026. U.S. output growth revised to 1.5% in 2025 and 0.8% in 2026.
China faces reciprocal tariffs up to 145%, contributing to $780 billion in total tariffs covering trade worldwide.
UBS warns of profit margin squeeze for companies due to lack of pricing power to offset higher input costs.
Uncertainty surrounds forecasts, emphasizing the need for scenario planning amid ongoing tariff negotiations.
Investors advised to shift towards defensive sectors, monitor trade signals, and track GDP and CPI releases for recalibration.
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