Global Growth Slows While European Credit Markets Show Resilience: A 2025 Outlook

From Investing.com: 2025-06-09 02:43:00

As global trade tensions rise in 2025, the world economy faces a slowdown with global GDP growth downgraded to 2.9% by the OECD. The U.S. threatens tariffs, especially against the EU, creating uncertainty in the markets. Europe may have legal challenges delaying tariffs, providing some economic relief. European private credit markets remain strong with low default rates and ample liquidity. Different sectors show varying sensitivity to tariffs, with financials and utilities more resilient compared to energy and natural resources. UBS recommends selective exposure to European credit markets for investors in the face of ongoing trade disruptions.



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