Summary
The International Monetary Fund (IMF) has lowered its global economic growth forecast due to the war in Iran, which has disrupted energy supplies and raised prices. The IMF warns that this conflict could slow global growth more severely if problems with energy continue into next year.
Key Facts
- The IMF reduced its 2026 global growth estimate from 3.4% to 3.1%.
- In a severe scenario with ongoing energy issues, growth could fall to 2%.
- Inflation worldwide may rise to 6% because of the conflict.
- The war disrupted oil supplies mainly through a blockade at the Strait of Hormuz.
- The U.S. economy is expected to grow by 2.3% in 2026, slightly lower than previously forecast.
- The UK’s 2026 growth forecast was cut to 0.8%, the largest drop among G7 countries.
- Saudi Arabia’s growth forecast fell by 1.4% for 2026 but is expected to improve in 2027.
- Other risks affecting the global economy include geopolitical tensions, high debt, and possible trade conflicts.
