Berenberg Bank Lowers U.S. GDP Growth Forecast Amid Economic Pressures

According to Odaily, Berenberg Bank has revised its forecast for U.S. economic growth, citing increased downward pressure. Following the announcement of reciprocal tariffs on Wednesday, U.S. stock markets experienced significant declines, with household exposure to the stock market reaching record highs. This, coupled with rising uncertainty, has hindered corporate investment and employment plans. The bank has adjusted its projection for the U.S. real GDP growth in 2025 from 2.3% to 1.7%, and for 2026 from 2.0% to 1.6%. The revision is attributed to the impact of tariff increases and recent inflation expectations. Berenberg Bank now anticipates U.S. inflation, measured by core PCE, to reach 3.0% in 2025, up from the previous estimate of 2.7%.