Recession and stagflation concerns persist
A constructive outlook for the European economy exists, but Europe still faces a ‘perfect storm’ of cyclical and structural headwinds.
EUROPEAN OUTLOOK 2025
An opportunity forged in crisis?
Introduction
The economic landscapes of Europe and the United States present contrasting narratives for investors. The consensus view of “U.S. exceptionalism” leading global economic growth is well entrenched. In contrast, Europe is set for a year of sub-par growth, with projections under 1%, reflecting structural challenges and global trade dynamics. The region faces a pivotal year. But can opportunity beckon in trying times?
EXPLORE EUROPEAN OUTLOOKS ACROSS PGIM
Against this backdrop, we asked experts from our business affiliates for their independent quick takes on the outlook for the European economy and markets.
Total returns set to improve further
Stable yields and rental growth tell a compelling story, despite remaining elevated risks. The outlook is improving, but investors recognise the road ahead.
Jumpstarting European competitiveness
Headwinds abound, but the case for European strategic exposure in broadly diversified portfolios still exists.
Investors favour Europe over UK, and infrastructure in focus
The progressive shift from a bank funding to a non-bank funding model is the big theme playing out in Europe.
Europe underexposed to growth
Investors in European equities may have to be content with yet another year of modest returns, or work harder to unearth compelling opportunities.
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