OECDcuts eurozone growth forecast to 0.8% amid Middle East energy surge

The OECD lowered its eurozone growth forecast by 0.4 percentage points to 0.8% for 2026, citing energy price spikes from the Middle East war. Inflation is now projected at 2.6%, up 0.7 points. Germany and France each saw 0.2-point cuts to 0.8%. The OECD warns prolonged energy costs will raise business expenses and consumer prices, offsetting tech investment gains. Global growth remains at 2.9%. US growth is revised to 2% in 2026 (up 0.3 points) before slowing to 1.7% in 2027. China's growth is expected to decelerate to 4.3% in 2027. The OECD recommends energy efficiency policies and trade agreements to mitigate shocks.

SOURCE: https://www.channelstv.com/2026/03/26/oecd-cuts-2026-eurozone-growth-forecast-over-mideast-war/