EBRD Revises 2026 Growth Outlook

The European Bank for Reconstruction and Development expects economic growth across the 41 countries it covers to slow to 3.1% this year, a decrease of 0.5 percentage points from previous forecasts. This slowdown is due to rising energy prices and supply chain disruptions caused by the Middle East war. The forecasts have been significantly revised, especially for Lebanon and Iraq, where the economies are expected to contract by 2% and 1.5%, respectively, with export price expectations declining due to higher energy costs. The report warns that ongoing increases in food prices and borrowing costs could worsen the economic challenges in the region.

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