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Euronews
Euronews
Marta Pacheco

EU cuts 2026 growth forecast as Strait of Hormuz crisis pushes inflation up

The European Commission on Thursday cut its 2026 growth forecast for the European economy, as the ongoing conflict in the Middle East drives energy prices sharply higher.

The EU economy is now expected to grow by just 1.1% in 2026, down from the 1.4% projected in the Commission’s autumn forecast. The eurozone outlook was revised down further to 0.9%.

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