IMF Lowers 2026 Euro Zone Growth Forecast, Raises Inflation Outlook Citing Mideast Conflict
The International Monetary Fund reduced its 2026 growth projection for the 21-country euro area to 0.9% from 1.1% projected in April and lifted its inflation forecast to 2.8% from 2.6%, attributing the revisions to the U.S.-Israeli war on Iran and flagging risks from prolonged energy price pressures. The IMF cautioned against broad fiscal packages …