IMF lowers eurozone GDP growth forecast for 2026

The International Monetary Fund (IMF) has revised downward its forecast for economic growth in the eurozone for 2026, while simultaneously raising its inflation outlook.

According to a statement published on the fund's official website, cited by Report, the adjustment is attributed to prolonged disruptions in energy supplies triggered by the conflict in the Middle East.

According to the document, eurozone GDP growth is now projected at 0.9% for the current year, compared with the April estimate of 1.1%. The inflation forecast for consumer prices was also revised upward from 2.6% to 2.8%.

The statement said the eurozone economy is facing new challenges driven by the military conflict in the Middle East and the resulting rise in energy costs. These factors exacerbate long-standing structural issues in the European region, including demographic aging and persistently low productivity growth.

IMF analysts also warn that if the energy shock persists for longer, inflationary pressures and expectations could intensify significantly.