Deutsche Bank Sees Euro Area Growth Slowing Sharply in 2026 After Energy Shock
Deutsche Bank Research has cut its 2026 euro area GDP forecast to 0.5% from 1.1%, citing a Middle East-driven energy shock that raises the region's energy import bill, dents household purchasing power, weakens exports and prompts tighter monetary policy. The bank anticipates a shallow contraction in Q2, stagnation in Q3 and only modest recovery lat…