00:01The EU economy has downgraded its economic growth forecast for 2026 from a 1.4% rise in GDP to
00:111.1%.
00:12A report by the European Commission stated the EU economy has been worsened by the conflict in the Middle East
00:19and a resulting surge in energy prices.
00:22Meanwhile, EU inflation is predicted to reach 3.1% this year due to the disruption around the Strait of
00:30Hormuz,
00:31one of the world's key oil and gas shipping routes.
00:34The report said that before the end of February, the EU economy was expected to keep growing moderately as inflation
00:42continued to fall.
00:44EU officials say the shock recalls Russia's 2022 invasion of Ukraine
00:49and warned that Europe's dependence on imported fossil fuels leaves it highly vulnerable,
00:55but that thanks to years of investment in renewable energy, the bloc is better prepared to face the crisis.
01:02The Commission also warned that shortages of refined oil products, fertilizers and other industrial inputs
01:10could lead to the increase of food and manufacturing costs across Europe.
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