The International Monetary Fund has slightly lowered its global economic growth forecast, warning that the conflict in the Middle East could have serious consequences if it drags on and drives up energy prices.
According to the IMF, the global economy is now expected to grow by 3.1% in 2026. However, this projection is based on the assumption that the conflict—linked to tensions involving Iran—will be short-lived.
The organization cautioned that in the event of escalation, combined with a sharp rise in oil and gas prices, global growth could drop to around 2%, bringing the world closer to the risk of recession.
The IMF also warned that a prolonged conflict could trigger a large-scale energy crisis, significantly impacting global markets, supply chains, and economic stability.
