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Headlines

Growth in euro area highly uncertain due to trade war and tensions, ECB's Rehn says

Published by Global Banking & Finance Review

Posted on December 19, 2025

1 min read

· Last updated: January 20, 2026

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Growth in euro area highly uncertain due to trade war and tensions, ECB's Rehn says

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HELSINKI, Dec 19 (Reuters) - The outlook for growth and inflation in the euro area remains highly uncertain due to trade wars and geopolitical tensions, European Central Bank policymaker Olli Rehn

Euro Area Growth Faces Uncertainty from Trade War, ECB Warns

HELSINKI, ‌Dec 19 (Reuters) - The ‍outlook for ‌growth and inflation in ⁠the euro ‌area remains highly uncertain due to trade wars ⁠and geopolitical tensions, European Central Bank policymaker Olli Rehn ‌said on Friday.

"Despite ⁠recent positive growth surprises, the geopolitical situation and the ongoing trade war may still bring negative surprises for the eurozone," ‍Rehn told reporters in Helsinki.

The central bank for the 20 countries that share the euro kept its ⁠policy rates steady on Thursday and revised upwards some of its growth and inflation projections.

(Reporting by ‌Essi Lehto, editing by Jagoda Darlak and Terje Solsvik)

Key Takeaways

Euro area growth and inflation outlook remains uncertain.
Trade wars and geopolitical tensions are major concerns.
ECB kept policy rates steady despite growth surprises.
Inflation projections were revised upwards by ECB.
Olli Rehn emphasizes potential negative surprises.

Frequently Asked Questions

What is monetary policy?

Monetary policy refers to the actions taken by a country's central bank to manage the money supply and interest rates to achieve macroeconomic objectives such as controlling inflation, consumption, growth, and liquidity.

What are financial markets?

Financial markets are platforms where buyers and sellers engage in the trade of assets such as stocks, bonds, currencies, and derivatives, facilitating the exchange of capital and investment.

What is economic growth?

Economic growth is the increase in the production of goods and services in an economy over a period, typically measured as the percentage increase in real GDP.

What is the European Central Bank?

The European Central Bank (ECB) is the central bank for the euro and is responsible for monetary policy within the Eurozone, aiming to maintain price stability and oversee the banking system.

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Growth in euro area highly uncertain due to trade war and tensions, ECB's Rehn says

Euro Area Growth Faces Uncertainty from Trade War, ECB Warns

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