The EC has lowered its economic growth forecast for 2026.

On May 21, the European Commission (EC) lowered its economic growth forecasts for the European Union (EU) and the Eurozone, amid Middle Eastern conflicts causing a new energy shock, driving inflation higher, and undermining consumer confidence and business activity in the region.

Screenshot from the video clip.

The EC forecasts GDP growth for the entire EU, comprising 27 member states, at 1.1% in 2026, down 0.3 percentage points from last fall's forecast, before rising to 1.4% in 2027.

For the 21-member Eurozone, the EC forecasts growth of 0.9% this year and 1.2% in 2027, lower than previous forecasts of 1.2% and 1.4% respectively.

The EC also revised its EU inflation forecast for 2026 to 3.1%, one percentage point higher than its previous forecast. The Eurozone inflation forecast for this year and next year is 3% and 2.3% respectively, significantly higher than the European Central Bank's 2% target.

Amid uncertainty over the duration of the Middle East conflict, Brussels warns that inflation in Europe may not subside and economic activity will struggle to recover in 2027 if energy prices continue to rise through the rest of this year. However, the risk of a full-blown recession is not yet being considered.

RG

Source: https://baoangiang.com.vn/ec-ha-du-bao-tang-truong-kinh-te-nam-2026-a486424.html