Source: Coindoo Original Title: Eurozone Beats Forecasts as Worldwide Outlook Improves Original Link: https://coindoo.com/eurozone-beats-forecasts-as-worldwide-outlook-improves/

Eurozone Growth Accelerates Amid Global Economic Resilience

At a moment when tariff battles and geopolitical anxiety dominate headlines, new data suggest the global economy is proving far harder to derail than many policymakers anticipated.

Fresh revisions from Eurostat and global institutions indicate that momentum across several major regions held up more firmly than earlier estimates reflected.

Key Takeaways:

• Eurozone growth beat expectations, showing stronger consumer and business spending.
• The OECD sees momentum now but warns global growth will cool as trade costs rise.
• Emerging markets show mixed trends, with Argentina stabilizing while China’s housing slump raises concerns.

Eurozone Benefits From Its Own Consumers

The clearest upside surprise emerged in Europe. Rather than slowing as feared, the euro area actually accelerated at a quarterly pace of 0.3%, an upgrade from the initial 0.2% reading.

Instead of exports or industry, it was households and companies driving demand — buoyed by low financing costs and a labor market still generating paychecks. ECB officials are now sounding slightly more confident, saying the outlook is no longer tilted entirely toward downside risk, even if the geopolitical environment remains tense.

Inflation continues to send mixed signals. While headline prices nudged higher to 2.2%, the bank’s preferred core measure stayed steady at 2.4%, offering little justification for deeper rate cuts.

OECD Upgrades Today, Caution Tomorrow

The OECD echoed the positive tone by raising its forecasts for the US and euro area, crediting fiscal stimulus and the investment boom surrounding artificial intelligence. But it also urged restraint:

Growth will likely downshift in 2026 to 2.9%, it warned, once trade frictions and tariff costs begin filtering through to production and spending.

AI Investment Frenzy Rings Alarm Bells in London

The Bank of England issued its own warning — not about recession, but about excess optimism.

With AI-linked firms piling on debt to fund data centers, the central bank worries that sky-high valuations could crack. A correction, it cautioned, could spill beyond tech stocks, especially given growing stress indicators in corporate credit markets.

US Debates Interest-Rate Floor While Bankruptcies Climb

Across the Atlantic, the Federal Reserve is wrestling with a different problem: how far to push rate cuts. Internal disagreements have widened dramatically, with policymakers offering the most divergent end-point projections in over a decade.

At ground level, strains are showing. A program designed to help the smallest US businesses has set a record number of bankruptcy cases, suggesting that rate pressures and debt burdens are beginning to take their toll.

Asia Offers Both Stability and Concern

South Korea continues to benefit from two of its biggest strengths — chips and autos — helping sustain export momentum through November.

China’s picture is murkier. Monthly home-sales figures have disappeared from private databases following government requests, raising fresh questions over transparency in one of the country’s most fragile sectors.

Emerging Markets Plot Comebacks Despite Headwinds

In Argentina, improving confidence after the midterms has encouraged officials to prepare for a tentative return to global bond markets — a dramatic shift from the crisis backdrop only weeks ago.

Brazil’s quarterly growth slowed to 0.1%, reinforcing expectations for lower interest rates, while Chile logged its second month of expansion and South Africa extended its longest post-pandemic streak — powered mainly by mining and agriculture.