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Macro - Country Economic Forecasts - Eurozone

Publisher Oxford Economics
Published Mar 12, 2026
Length 6 Pages
SKU # OFE21077199

Description

We've raised our average inflation forecast for the Eurozone this year by 0.5ppts to 2.2% to reflect the impact we expect from the US/Israel-Iran war. But in our central scenario, the impact on GDP is more limited, and so we have lowered our 2026 Eurozone GDP growth forecast by just 0.1ppt to 1%. However, risks are clearly skewed to the downside – a more negative assumption on energy prices would have a more meaningful impact on inflation and activity because the Eurozone is more exposed to these shocks than other advanced economies.

Table of Contents

6 Pages
Eurozone: Inflation is set to jump in the near term
Forecast overview
Recent developments
Short
term outlook
Key drivers of our short
term forecast
Economic risk
What to watch out for
Exposure to key global risks
Long
term prospects
Alternative long
run scenarios
Background
Economic development
Structure of the economy
Balance of payments and structure of trade
Policy

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