IMF Cuts Eurozone Growth Forecasts Again on Energy Inflation Risks
8 Articles
8 Articles
The annual report on the economy of the bloc: in 2026, GDP will stop at 0.9%, in 2027 it will be of 1.2%, below the pre-war estimates of 0.5 and 0.2 percentage points. Inflation will rise to 2.8 this year and to 2.3% the next, i.e. 0.8 and 0.4 decimal places above the estimates drawn up before the conflict
The International Monetary Fund (IMF) has worsened its forecast for economic growth in the eurozone, from 1.1% estimated in April to 0.9% estimated now, due to a greater than expected impact of the war in the Middle East, as recorded in the report on the euro area economy that Kristalina Georgieva, managing director of the institution, shared with the ministers of economy and finance of the common currency during their meeting in Luxembourg.
IMF cuts eurozone growth forecasts again on energy inflation risks
The International Monetary Fund warned Thursday that the energy price shock from the Middle East war, now in its fourth month, would drag down eurozone growth more than it previously expected, while pushing up inflation further.Even if surging oil and gas prices are "temporary", the fund said consumer confidence would weaken amid more persistent energy...
The institution is expecting growth of 0.9% this year, compared to 1.1% expected last April. The war in Iran and rising energy prices are penalising the euro area more strongly than has been anticipated so far.
The short-term prospects for the euro zone are obscured by the war in the Middle East and the consequent blockade of the Strait of Ormuz. The IMF now expects the monetary area economy to grow by 0.9% this year, according to a review known this Thursday. It is just two tenths less than in the previous forecast, but between the two have passed less than two months. “The war is expected to be a major negative disturbance,” explains the Fund, which …
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