Tracking the European Economic Implications of the Middle East Conflict

This report assesses the economic impact of the Middle East conflict on Europe, leading to GDP growth downgrades and inflation forecast upgrades in the Euro Area and UK.

Key Takeaways

• 1.Goldman Sachs has downgraded Euro Area GDP growth in 2026 by approximately 0.8 percentage points.
• 2.Inflation forecasts for the Euro Area have been raised by 2.0 percentage points and by 1.7 percentage points for the UK for end-2026.

Table of Contents

• European Economics Team
• Disclosure Appendix