Reported about 8 hours ago
Goldman Sachs has raised its economic growth forecast for Germany to 0.2% for 2025, highlighting increased military and infrastructure spending, and has also upgraded the Euro area's growth estimate to 0.8%. This shift follows discussions among German political parties to relax fiscal rules to support nearly $1 trillion in borrowing for defense and infrastructure. As a result of Germany's spending plans, Goldman predicts a ripple effect on military spending in neighboring countries, particularly France, Italy, and Spain.
Source: YAHOO