IMF Warns Europe’s Growth Will Slow as Russia’s War, Middle East Crisis Drive Up Energy Costs

The International Monetary Fund forecasts eurozone growth of just 1.1% in 2026 and 1.2% in 2027, warning that Russia’s war against Ukraine and the Middle East conflict are driving up energy costs and prolonging inflation. At its World Economic Outlook briefing, IMF officials also warned of risks to Gulf economies and highlighted the growing dependence of global trade on artificial intelligence.