1 Day
Source:
اقتصاد سكاي نيوز عربية
ECB: Iran's conflict impacts Eurozone consumption
The impact of the Iran war outbreak on the Eurozone economy, where households experienced a sharp decline in spending during the first weeks of the conflict due to decreased confidence and increased fears about inflation and income. Nominal consumption growth slowed to around 2.5% annually in April, compared to 3-4% since mid-2024. High-income households accounted for most of the decline by reducing purchases of non-essential goods and services. The rise in energy prices following the start of the war heightened inflation fears, leading consumers to expect a 2.5 percentage point increase in inflation over the next year. These concerns threaten to further deteriorate spending if the war continues or energy prices rise further, with warnings that consumer confidence will remain fragile.
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