EU cuts eurozone 2026 growth forecast to 0.9% on Mideast war, inflation forecast hiked to 3.0%.
The European Commission cut its 2026 GDP growth forecast for the euro area to 0.9 percent amid the war in Iran, down from a previous prediction of 1.2 percent. The commission also hiked its forecast for inflation in the eurozone to 3.0 percent this year, compared to a previous 1.9 percent projection.
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France's economic resilience in the face of the Iran war shock is waning, threatening plans to reduce the budget deficit as the country approaches a crucial election.
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