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The International Monetary Fund lowered its forecast for the Eurozone's economic growth in 2026 to 0.9%, while raising its inflation outlook to 2.8%, due to rising energy prices linked to the ongoing war in the Middle East and its impact on European markets. The report indicated that continued disruptions in energy supplies could push inflation to higher levels, with warnings that escalating conflicts or delays in energy reforms could worsen Europe's economic challenges. The Fund called for increased investments in renewable energy and more targeted support to reduce the burden on public finances.
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