Global Economic Commentaries and Outlook, week 22, 2025

Overal OutlookIn Europe, sentiment cooled as the eurozone composite PMI sl...

author: Ahura Chalaki

published:May 25, 2025 1:18

Reading Time:

17 minutes

category:weekly

Overal Outlook

In Europe, sentiment cooled as the eurozone composite PMI slipped below the 50 threshold on a service sector pullback. Meanwhile, Germany’s first-quarter GDP was revised up to 0.4% on export front‐loading, and manufacturing surveys offered modest optimism.

In Asia, Japan’s core CPI surged to a two-year high of 3.5%, stoking expectations of BOJ tightening and generating volatility in the yen and ultra-long JGB yields. China’s Caixin PMIs for both manufacturing and services continued to reflect tariff-related headwinds.

Global Policy and Trade

G7 finance leaders convened to tackle excessive imbalances and bolster supply‐chain resilience, underscoring the need for coordinated policy actions to stabilize the global economy. Trade tensions—particularly U.S. tariffs—remained a dominant theme, with firms’ front-loading of orders contributing to supply-chain distortions. The IMF cited heightened trade frictions and policy uncertainty as key factors in its downward revision of the 2025 global growth forecast to 2.8%.

Commodity markets were unsettled by policy uncertainty and supply concerns: oil prices posted a weekly decline on expectations of OPEC+ output increases, while gold benefited from haven flows amid fiscal anxiety.