Middle East conflict delivers shock to economic growth in Europe: economic officials

The Middle East conflict has caused a shock to European economic growth due to soaring energy prices, impacting businesses and households and driving down European economic growth and increasing inflation. The overall impact on the European economy depends on the evolution of the conflict, particularly its effects on energy supply and infrastructure. The EU has limited maneuvering room due to high deficits and debts, and the need to increase defense spending.