Norwegian Wealth Fund Manager Warns of Inflation Risks Due to Tariffs in 2025
During the World Economic Forum in Davos, Nicolai Tangen,
the manager of Norway’s sovereign wealth fund, cautioned that inflation driven
by tariffs is among the most significant risks threatening markets in 2025.

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Inflation
ZEW

Inflation

In an interview with CNBC, Tangen highlighted that inflation, fueled by rising tariffs, poses a major challenge to global markets.
He added, “I don’t think I should offer advice to the United States,
but if we look at global risks, inflation tops the list, and it is almost entirely driven by tariffs.”

He emphasized that some recent proposals from the United States could exacerbate inflation due to labor shortages and the imposition of additional tariffs, which would increase production costs and prices.

Tangen also pointed to other risks, such as prolonged high-interest rates, elevated levels of government debt,
and escalating geopolitical tensions, which present major challenges for the global economy this year.

ZEW

Divergence in Economic Confidence Between Germany and the Eurozone, According to ZEW Index for January 2025

Data from Germany’s ZEW Institute, released on Tuesday, revealed a divergence in economic confidence levels between Germany and the Eurozone for January 2025, reflecting differing future expectations.

Germany: The ZEW Economic Sentiment Index fell to 10.3 points, below expectations of 15.2 points and lower than December 2024’s reading of 15.7 points. This decline indicates reduced optimism about Germany’s economic performance in the coming months.

Eurozone: In contrast, the ZEW Economic Sentiment Index for the Eurozone rose to 18.0 points, exceeding expectations of 16.9 points and higher than December’s 17.0 points. This increase reflects greater confidence in the economic performance of Eurozone countries.

This divergence stems from varying economic challenges and fiscal policies faced by Germany and the Eurozone, painting a mixed economic outlook for the region.

Norwegian Wealth Fund Manager Warns of Inflation Risks Due to Tariffs in 2025

Norwegian Wealth Fund Manager Warns of Inflation Risks

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