"The International Monetary Fund (IMF) has lowered its global economic growth forecast as tensions between the United States and Iran have driven up energy and food costs globally. The IMF expected the global economy to grow by 3.1 percent this year, a slowdown from its earlier forecast of 3.3 percent."
"Iran's outlook saw one of the largest country-level revisions, with an initial small amount of growth forecast in 2026 cut by 7.2 points, resulting in a forecast contraction of 6.1 percent. The IMF also cut GDP growth forecasts for Saudi Arabia from 4.5 percent to 3.1 percent."
"The current hostilities in the Middle East pose immediate policy trade-offs: between fighting inflation and preserving growth and between supporting those affected by the rising cost of living and rebuilding fiscal buffers, the IMF said in its World Economic Outlook report."
The global inflation forecast has increased to 4.4%, influenced by rising oil, gas, and fertilizer prices. The IMF has revised its global economic growth forecast down to 3.1% from 3.3% due to escalating tensions between the US and Iran, which have impacted energy and food costs. Iran's closure of the Strait of Hormuz and attacks on energy infrastructure have exacerbated the situation. The IMF also noted significant regional disparities, with countries like Iran facing severe contractions in growth forecasts.
Read at www.aljazeera.com
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