Barclays raises growth expectations for the U.S. and Eurozone, but warns that risks remain.

CoinVoice has learned that Barclays Bank stated in a report released on Thursday evening that the likelihood of the U.S. economy entering a recession this year has significantly dropped due to signs of easing tensions in U.S.-China trade, and therefore the bank has raised its forecast for U.S. economic growth.

Barclays currently expects the U.S. economy to rise by 0.5% this year and by 1.6% in 2026, both higher than the previous forecasts of -0.3% and 1.5%, respectively. Meanwhile, as uncertainty decreases and the overall economic environment improves, Barclays has also raised its growth expectations for the Eurozone.

The eurozone is currently expected to achieve zero growth this year, better than the previous forecast of a contraction of 0.2%. However, the eurozone may still experience a technical recession in the second half of this year, although the extent of the recession is expected to be smaller than previously anticipated. "Overall, we remain cautious about the growth outlook for the eurozone, as current uncertainty remains high, the negotiations between the US and Europe on reciprocal tariffs are still at a technical level, and there have been no signs of progress yet."