The IMF has revised its forecasts for economic growth in the euro area this year to 0.9%, due to the war.

The International Monetary Fund (IMF) has announced a negative revision of economic growth forecasts for the euro area, estimating a growth of 0.9% this year, down from the previous forecast of 1.1%. Additionally, inflation is expected to rise to 2.8%, up from 2.6%.

The IMF emphasizes that the war in the Middle East has generated a negative shock to supply and that high energy prices could further affect the economy. The institution warns that an escalation of the conflict or delays in repairing energy infrastructure could intensify economic risks.

The European Central Bank is expected to continue raising interest rates, and the IMF advises finance ministers in the euro area to avoid large-scale fiscal support to counteract the impact of high energy costs. Additionally, the World Bank forecasts an expansion of 0.8% for the euro area in 2026.