Europe: Tracking the European Economic Implications of the Middle East Conflict

This report evaluates the economic impact of the Middle East conflict on Europe, highlighting downgrades to 2026 GDP growth and increases in inflation forecasts for the Euro Area and the UK.

Key Takeaways

• 1.GDP growth forecasts for the Euro Area in 2026 have been downgraded by approximately 0.8 percentage points.
• 2.End-2026 inflation forecasts have been raised by 2.0 percentage points for the Euro Area and 1.7 percentage points for the UK.

Table of Contents

• Europe: Tracking the European Economic Implications of the Middle East Conflict (12/06)
• European Economics Team
• Disclosure Appendix

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