The bloc’s GDP is now projected to grow by 0.9% this year, down from a previous forecast of 1.2%, while the 2027 outlook has also been lowered to 1.2% from 1.4%.
The EC revised upward its inflation forecast for the EU in 2026 to 3.1%, 1 percentage point higher than the earlier estimate. These forecasts came as the ongoing conflict in the Middle East is triggering a new energy shock that is reigniting inflation and shaking economic confidence.
