ESM Sees Recession if US Sell-Off, New MidEast War Hit
The European Stability Mechanism said combined shocks could cut euro area growth to 0.6% in 2026 and lift inflation near 5%.
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9 Articles
ESM sees recession if US sell-off, new MidEast war hit
A new Middle East conflict and a US assets sell-off are the two biggest risks to the euro zone, which, if twinned, could tip the euro area into a recession and send inflation near 5%, the European Stability Mechanism said in a report today.
ESM sees euro zone recession if US sell-off, new Middle East war hit at ...
The European Stability Mechanism estimates that growth in the euro area economy should slow to 0.6% in 2026 and fall to -0.4% in 2027. Exports should be 7% below expectations.
The European Stability Mechanism (EMS) today alerted to the risk of recession and rising inflation in the euro area in 2027 in a scenario of worsening tensions in the Middle East and financial turbulence in the United States. In an adverse scenario with prolonged geopolitical tensions and a strong reassessment of the assets of the United States, the euro area is approaching a recession as inflationary pressures intensify, says the EMS in its mos…
Eurozone Recession Risk Rises as ESM Warns of Middle East Conflict and US Financial Shock
The European Stability Mechanism (ESM) has issued a stark warning that the eurozone economy could slide into recession if geopolitical tensions in the Middle East combine with financial instability in the United States. In its first-ever Euro Area Stability Watch report, the ESM identified a potential
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