Inflation, auto manufacturing pressures, and AI growth are three forces shaping the Europe, the Middle East, and Africa (EMEA) region’s macroeconomic outlook this year. While economies in EMEA are grappling with how to handle fuel and food inflation caused by the Iran war, they’re also struggling to compete with strong auto manufacturing coming out of China. However, AI is a bright spot for economic growth in EMEA, with much of the region focused on embracing the technology to support prosperity.
The extent to which EMEA economies can tame inflation, manage weakness in the auto sector, and harness AI for growth will be key to their economic prosperity in the months to come. In this report, we explore how these themes will impact EMEA in the second half of 2026.
