Company: BBVXF
Filing Date: 2025-04-29
Form Type: 6-K
Source: 0000842180-25-000023
Chunk: 25

Company: BANCO BILBAO VIZCAYA ARGENTARIA, S.A.
Filing Date: 2025-04-29
Form: 6-K
Chunk 25
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 macroeconomic environment. As a result of adopted or announced tariffs, global growth could slow or decline. The impact on economic activity could be particularly pronounced in the United States and China, given China’s response to the measures announced by the U.S. government and the recent escalation in trade tensions between the United States and China, which could also weigh on other economies.

While fiscal stimulus measures could partially offset the impact of trade protectionism, particularly in the Eurozone, where significant public spending increases have been announced, the impact of higher U.S. tariffs could be amplified by the adoption of retaliatory measures by other countries, sustained uncertainty, weakening confidence levels and evolving financial conditions, among other factors.

Increased tariffs would also raise the risk of inflation in the United States, potentially limiting the Federal Reserve’s room to cut interest rates in 2025. In contrast, weaker growth in the Eurozone could allow the European Central Bank to implement slightly larger-than-expected rate cuts, although this would also depend, among other factors, on the EU’s response to U.S. tariffs, which could create additional inflationary pressures.

Beyond higher import tariffs, tighter U.S. controls on migration flows could affect the labor market, add to inflationary pressures and weigh on economic growth. The new U.S. administration’s fiscal, regulatory, industrial and foreign policies, among others, could likewise contribute to financial and macroeconomic volatility.

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In addition, there is a high risk of sovereign debt tensions, given the high debt levels in both developed and emerging countries, relatively high interest rates, and weak economic growth prospects.

Rising trade protectionism and the growing rivalry between the United States and China, among other factors, could intensify geopolitical tensions, against a backdrop of persistent conflicts in Ukraine and the Middle East. Similarly, recent negotiations aimed at ending the war between Ukraine and Russia could fuel global tensions in the long term, despite potentially having short-term benefits, including downward pressure on energy prices. In response to these risks and the changes in the foreign policy of the new U.S. administration, the European Union has adopted measures to increase military spending, which could support growth but, to some extent, add pressure on inflation and interest rates in the region.

Overall, rising global geopolitical tensions increase uncertainty around the outlook for the world economy and the likelihood of economic and financial disruptions, including an economic recession.

The Group is exposed, among others, to the following general risks related to the economic and institutional environment in the countries where it operates: a deterioration in