Europe’s two largest economies, Germany and France, were particularly affected, showing a downturn from March to April. As Euractiv notes, business survey data published on April 23 showed stagnation of economic activity in the eurozone in April.
The eurozone’s preliminary composite purchasing managers’ index (PMI), which measures overall activity in manufacturing and services in the single currency area, fell from 50.9 to 50.1 between March and April, just slightly above the 50-point mark separating growth from contraction.
Germany, the bloc’s largest economy, moved into contraction for the first time in four months, with its composite PMI falling from 51.3 to 49.7.
Activity in France, the eurozone’s second-largest economy, contracted for the eighth consecutive month, with the pace of contraction accelerating from 48.0 to 47.3.
EU exporters are currently subject to a 10% U.S. base duty, as well as 25% duties on automobiles, steel and aluminum. Trump also recently suspended flexible “reciprocal duties” on U.S. trading partners for 90 days, including a 20 percent levy on EU exports.
The study came a day after the International Monetary Fund lowered its forecast for global growth in 2025 and 2026, warning that Trump’s tariffs had brought the world into a “new era” of economic protectionism and political unpredictability.
The fund now expects the eurozone economy to grow 0.8 percent this year and 1.2 percent in 2026, down 0.2 percentage points from its previous forecast in January.
France’s expected economic growth in 2025 was lowered to 0.6% from 0.8%. Germany, which has been in recession for the past two years and whose export-oriented industries are highly exposed to disruptions in global trade, lowered its projected growth rate to 0% from 0.3%.
