US GDP data will be released on Friday, with economists predicting a slowdown to 2.8% growth in Q4 2025, down from 4.4% in Q3, amid concerns about Trump’s tariffs. Meanwhile, Germany is expected to emerge from recession in 2026, bolstered by government spending, although risks of a “sugar rush” scenario persist. In the UK, key data this week will inform potential interest rate cuts by the Bank of England, as inflation shows signs of easing. Economists anticipate UK inflation to drop to 3% in January, influenced by lower energy prices.
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