Advanced economies confront stagflation risk from Middle East conflict

economic-research.bnpparibas.com (French)

Advanced economies face stagflation risk due to a new Middle East conflict shock. The shock is causing rising inflation and slowing growth, impacting household purchasing power. However, AI, defense spending, and trade are expected to support growth. Fiscal policy will offer less support, and central banks may raise interest rates to combat inflation, with the Fed's stance uncertain.


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Advanced economies confront stagflation risk from Middle East conflict | News Minimalist