The EU on Monday cut its eurozone growth forecast for 2026 as risks from international trade and geopolitical tensions weigh on Europe's economy.

The European Commission expects the 20-country single currency area to grow by 1.2 percent in 2026, down from a previous forecast of 1.4 percent.

The bloc's executive said Europe's "highly open" economy remained "susceptible to ongoing trade restrictions", but noted that US trade deals with partners including the European Union "alleviated some of the uncertainties".

"Persistent trade policy uncertainty continues to weigh on economic activity, with tariffs and non-tariff restrictions potentially constraining EU growth more than expected," the commission said in a statement.

For the entire 27-country EU, Brussels expects growth of 1.4 percent

See Full Page