Global Economies Vulnerable Amid US Tariff Threats

New Zealand's economic growth is expected to be modest, with a predicted rise of 1.5% to 2% this year, driven by exports and tourism, but tempered by slower productivity and population growth. Globally, economic uncertainty is exacerbated by potential US trade tariffs, which could significantly impact the eurozone and UK economies, potentially reducing the eurozone's GDP growth to 0.5% in 2025 if tariffs increase to 25%. In the UK, Chancellor Rachel Reeves has announced substantial spending cuts to address financial challenges, while maintaining fiscal discipline, despite potential negative impacts on vulnerable populations. Meanwhile, the ECB continues to manage eurozone monetary policy, employing tools like interest rates and quantitative easing to maintain price stability. The US economy has shown slower growth rates, with a compounded annual growth rate of 2.4% in Q4 and concerns over future growth due to trade deficits and tariffs. Overall, while there are signs of growth in several regions, global economic stability remains at risk due to geopolitical and trade-related uncertainties.