‘Very concerned’ about europe’s struggling economy, European Central Bank Policymaker Centeno Says

Europe’s Struggling Economy Has Economists Worried – And Senior European Central Bank Policymaker Mário Center, Echoes That View.

“I am very concerned about the European Economy,” Centeno, Who is also Governor of the Bank of Portugal, Told CNBC’s “Squawk Box Europe” on Friday.

On Thursday, the ECB revised its gross domestic product expectations for the euro area to 0.9% growth in 2025, down from a previous projection 1.1% expansion. The Euro Area’s Seasonally adjusted GDP most recently eked out a 0.1% Increase in the fourth quality.

Center Linked The Downward Growth Outlook Revision to Reduced Exports and Investments, Echoing the ECB Statement.

“Special Investment is, I Think, Quite Subdued in Europe. It will take four years for us to go back to the 2023 level of investment in the private sector, Six Years in Terms of Hoys of Housing Investment ( be) Going back to 2022 levels only in 2028, “He explained.

“These are numbers that raise some questions about the recovery in europe,” Centeno Added.

Concerns about europe’s sluggish economy has accepted in recent months, following repEled Threats of Tarifs from the US Administration. Us President Donald Trump has alredy introduced duties on important from several key us trading partners and has indicated that europe clock be the next target.

But there is Frequent policy movement In the us’ position, with pauses, delays and exemptions aplanty as negotiations and pledges of reciprocal measures from the targeted counted counties continue.

“Tariffs are a tax. They are a tax on bot consumption and production, and we do know that taxes have a very clear impact on the economy,” Centeno Said Friday, Warning THOTIN SAID FRIDAY From a tarif war.

One bright spot ahead for europe could be a potential defense spending push from the european union, which was introduced earlier this week of the back of souring regarding the us and ukraine.

If such packages are “Well designed,” They could have a positive impact on europe’s economy, center said.

Germany also this week announced plans To boost infrastructure and defense spending, although the proposal must first pass some hurdles before it can be implemented.

Centeno also addressed the outlook for eCB interest rates, Signaling Further Trims Were Expected Ahead.

“We do think that journey is very clear, although these rate cuts (was) implemented trust the economy is stagnated, we do have baseline a projection of a Project of Infection of Infectioning But that that includes further adjustment in the rates, “He said.

However, the Central Bank Needed to Remain “Open” and Follow a Data Dependent, Meeting-by-Meeting Approach, Especially Due to the Currenty Regarding Economic Policy, Centeno Policies, Centeno Said.

The ECB on Thursday Announced Its Sixth Interest Rate Cut Since June Last Year, Taking Its Key Rate, The Deposit Facility Rate, Another Quarter Point Lower to 2.5%. The move had been widely expected by markets.

In a statement announcing the decision, the eCB also tweaked the language it used to characterize Monetary policy to say it was now “meaningfully less restrictive,” a change from the previous description of previous descry “Restrictive.”

Interpretations of what this also imply for the rate path ahead divergedWith some analysts and economists saying it suggested that policmakers were decided more cautious about cutting rates. Others said the Central Bank’s Statement Indicated More Cuts Ahead, but that a Pause in the Cutting Cutting Cycle should now be on the Horizon.

Markets were last pricing in an around 57% chance of the ecb holding rates steady during its april monetery policy meeting and a 43% probability of a furious Quarter-POITESTION.

Beyond the ecb’s statement, markets are likely to

“The decision in April will take on board all the information we will get until then,” The Central Bank’s Center Commentated.