Fiscal Policy

“In the Euro area, growth looks set to run above potential as the region continues to prove resilient in the face of lingering trade uncertainty. The German fiscal stimulus, a still-healthy labor market, reduced trade-policy headwinds, and supportive credit flows should collectively sustain domestic demand and investment.”

“In the US, activity should stay robust, underpinned by strong AI-related capital expenditure, still-easy financial conditions, and a positive fiscal impulse from the 'One Big Beautiful Bill'.”

“Japan is also poised for another year of solid performance, with domestic demand in the driver’s seat: a tight labor market, powerful incentives to invest in labor-saving technologies, and targeted fiscal measures should keep growth on a firm footing.”