Germany's Berenberg Bank: Downward pressure on the US economy intensifies

Odaily News Germany's Berenberg Bank said that downward pressure on US economic growth has intensified. Based on the reciprocal tariffs announced on Wednesday, the sharp drop in US stocks (US households' exposure to stocks hit a record high), and the continued rise in uncertainty that has hampered corporate investment and employment plans, we have lowered our forecast for US real GDP growth in 2025 from 2.3% to 1.7%, and GDP in 2026 from 2.0% to 1.6%. Due to the increase in tariffs and the recent rise in inflation expectations, we expect US inflation (measured by core PCE) to reach 3.0% in 2025, compared with the previous forecast of 2.7%. (Jinshi)