Barclays raises growth forecasts for the U.S. and Eurozone, but warns that risks remain

ChainCatcher news, Barclays Bank stated in a report released on Thursday evening that the likelihood of the U.S. economy falling into recession this year has significantly decreased due to signs of easing tensions in U.S.-China trade. As a result, the bank has raised its forecast for U.S. economic growth.

Barclays now expects the U.S. economy to grow by 0.5% this year and 1.6% in 2026, both higher than the previous forecasts of -0.3% and 1.5%, respectively. Meanwhile, as uncertainty decreases and the overall economic environment improves, Barclays has also raised its growth expectations for the Eurozone.

The Eurozone is now expected to achieve zero growth this year, better than the previous forecast of a contraction of 0.2%. However, the Eurozone may still experience a technical recession in the second half of this year, although the extent of the recession is expected to be smaller than previously anticipated. "Overall, we remain cautious about the growth outlook for the Eurozone, as current uncertainty remains high, negotiations between the U.S. and Europe regarding reciprocal tariffs are still at a technical level, and there are no signs of progress."