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World Bank Trims 2026 GDP Growth Forecast for Euro Area

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The World Bank trimmed its 2026 economic growth forecast for the euro area amid higher energy prices, with the region facing headwinds due to its reliance on natural gas and oil imports.

In its latest Global Economic Prospects released Thursday, the international organization said the euro area's gross domestic product is expected to grow 0.8% in 2026, lower than its 0.9% projection in January.

GDP growth is expected to pick up to 1.3% in 2027, compared with its previous 1.2% forecast. For 2028, GDP is projected to expand by 1.3%.

Meanwhile, the World Bank expects interest rate increases in the euro area in the near term.

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