London CNN —President-elect Donald Trump’s proposed protectionist policies, including hefty tariffs, will hurt Europe’s economic standing — leaving crisis-hit Germany particularly vulnerable, Goldman Sachs predicts.
Goldman Sachs expects gross domestic product across the 20 countries that use the euro to expand 0.8% next year, down from the 1.1% it forecast previously.
Goldman Sachs’ central expectation is for “a more limited set of tariffs on European economies,” targeting primarily their auto exports.
Goldman Sachs now expects the German economy to grow only 0.5% next year because of trade tensions, just over half the 0.9% growth it forecast previously.
“For European businesses, Trump’s return to the White House implies considerable trade policy risks and geopolitical uncertainty,” Berenberg chief economist Holger Schmieding wrote in a note Thursday.
Persons:
Donald Trump’s, Goldman Sachs, Trump’s, Trump, ”, Holger Schmieding, “
Organizations:
London CNN —, NATO, Republican, European Union, Volkswagen, VW
Locations:
Germany, United States, Europe, Ukraine, China