Portugal cuts growth forecast as Israeli-US war drives energy prices higher

Middle East Eye · March 25, 2026 Sanctions

Portugal cuts growth forecast as Israeli-US war drives energy prices higher Portugal’s central bank has sharply lowered its 2026 growth forecast, warning that the war in Iran and recent storm damage will weigh on economic activity. The Bank of Portugal now expects the economy to expand by 1. 8 percent in 2026, down from a previous 2.