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The EU will cut growth outlook, raise inflation forecast as Iran war drives 'stagflationary shock'

By CNBC May 18, 2026 Bearish
The EU will cut growth outlook, raise inflation forecast as Iran war drives 'stagflationary shock'
Europe faces a "stagflationary shock" from the war in Iran, the bloc's commissioner for the economy told CNBC. In the EU Commission's forthcoming spring report, growth forecasts are down and inflation forecasts are up, Valdis Dombrovskis said.
Europe faces a "stagflationary shock" from the war in Iran, the bloc's commissioner for the economy told CNBC. In the EU Commission's forthcoming spring report, growth forecasts are down and inflation forecasts are up, Valdis Dombrovskis said.