Market Update 10/2025 | Tariffs slow growth, but no recession in sight

US tariffs are weighing on both the US and European economies, leading to slower growth. In the first half of the year, the US and eurozone each expanded by just 0.7%, below the US average.

The labor market shows fewer new hires, though layoffs remain limited, keeping unemployment stable. While uncertainty persists, recent data suggests a recession is unlikely. Instead, moderate growth of around 0.7% or slightly higher is expected for the second half of the year.

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