European Economics Weekly: AI and European Growth, Where do We Stand?

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European Economics Weekly: AI and European Growth, Where do We Stand?

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May 22, 2026 05:49 PM GMT

Morgan Stanley Europe S.E.MEuropean Economics Weekly | Europe Jens Eisenschmidt

Chief Europe Economist

AI and European Growth, Jens.Eisenschmidt@morganstanley.comJean-Francois Ouvrard +49 69-21662817

Deputy Chief European Economist

Jean-Francois.Ouvrard@morganstanley.com +49 69-21662813

Where do We Stand? Morgan Stanley & Co. International plc

Bruna Skarica

This week, Jens Eisenschmidt, Chiara Zangarelli, Skander Garchi Chief UK Economist

Bruna.Skarica@morganstanley.com +44 20 7425-9110

and Jean-Francois Ouvrard discuss whether AI will support Chiara Zangarelli

economic activity in Europe at a time when the conflict in the Economist

Chiara.Zangarelli@morganstanley.com +44 20 7677-3644

Middle East weighs on growth. Next week, we will focus on

Morgan Stanley Europe S.E.

inflation and the ECB accounts. Gabriela Silova

Economist

This week in Europe: Can AI support European growth in this downturn? Gabriela.Silova@morganstanley.com +49 69-21662832

This week delivered some interesting data with the euro area PMIs. At 47.5 the Morgan Stanley & Co. International plc

Skander Garchi Casal

composite came in weaker than we had expected (much weaker than consensus had Economist

it, see here). The fall was particularly pronounced in France and we would take the Skander.Garchi.Casal@morganstanley.com +44 20 7425-0034

French reading with a pinch of salt (or two). Still, growth momentum of the euro Morgan Stanley Europe S.E.

area economy looks weak, we think a flat second quarter looks very likely. And we Claire A Thuerwaechter

see a clear pattern here: 2026 is not 2022, the renewed energy shock is hitting Claire.Thuerwaechter@morganstanley.com +49 69-21662842