EU to Lower Growth Outlook and Raise Inflation Forecast Amid Iran War-Driven Stagflation Concerns
The European Union is set to revise its economic growth forecast downward while raising inflation expectations due to a 'stagflationary shock' caused by the ongoing war in Iran. The Strait of Hormuz remains closed, keeping oil prices above $100 per barrel and limiting policymakers’ room for broad fiscal responses.
Topics: economic forecast energy crisis geopolitics inflation stagflation