IMF Cuts Euro Area's 2026 Economic Growth Estimate
The International Monetary Fund lowered its 2026 growth forecast for the euro area to reflect the effects of the ongoing war in the Middle East on energy prices and consumer confidence. In its latest World Economic Outlook published Wednesday, the IMF now expects the eurozone's growth to come in at 0.9% for 2026, down from its previous forecast in April of a 1.1% expansion. The growth estimate for 2027 was unchanged at 1.2%. The fund said its lower estimate for 2026 reflects a "sizable negative carryover" from the first quarter, largely driven by Ireland, as well as the impact of higher energy prices and weak consumer confidence.
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The International Monetary Fund lowered its 2026 growth forecast for the euro area to reflect the effects of the ongoing war in the Middle East on energy prices and consumer confidence.
In its latest World Economic Outlook published Wednesday, the IMF now expects the eurozone's growth to come in at 0.9% for 2026, down from its previous forecast in April of a 1.1% expansion.
The growth estimate for 2027 was unchanged at 1.2%.
The fund said its lower estimate for 2026 reflects a "sizable negative carryover" from the first quarter, largely driven by Ireland, as well as the impact of higher energy prices and weak consumer confidence.