The world economy has proven to be surprisingly resilient to tariffs, but geopolitical uncertainty continues to hold back investments and consumption. Global economic growth will not pick up momentum until the second half of 2026 – while failing to regain the annual average of 3 per cent growth per year before the pandemic.
The US economy is set to follow a significantly lower growth path, while Asia enters a period of heightened uncertainty. Conversely, Europe is now mobilising with Germany as the engine of the European investment cycle, which has already begun.
Germany accounts for almost 29 per cent of the euro area’s GDP. After years of underinvestment, the government has under Chancellor Friedrich Merz decided to launch a comprehensive initiative that combines regulatory reforms, a special multi-year funding framework, and easing of the so-called debt brake.
Between 2025 and 2027, the European economy will shift gears from its current weak performance to a more investment-driven expansion phase – building a long-awaited bridge into the next decade. Get the full overview with a deep-dive into key markets for Swedish exports. Download the report.
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