EU to downgrade economic forecast as Iran war fuels stagflation fears
EU Commissioner Valdis Dombrovskis said on Monday the bloc will likely revise its economic forecast downward in May amid the Middle East crisis.
The eurozone composite PMI fell to 48.6 in April, its weakest in roughly 18 months, as the closure of the Strait of Hormuz keeps energy prices elevated.
Germany halved its 2026 growth forecast to 0.5%, whilst eurozone consumer confidence hit its lowest level since December 2022