International Institutions Warn of Iran War's Potential Shock to the Global Economy
The International Monetary Fund and other international institutions have reported that the global economy has shown resilience in the face of the repercussions of the Middle East war, despite ongoing pressures on energy and trade markets. The Fund has revised its global growth outlook for 2026 down to 3%, with expectations of a recovery to 3.4% in 2027. Energy prices have increased by approximately 25% since the start of the war, and are expected to remain at elevated levels. Wide-ranging impacts have been avoided so far, although risks related to the conflict and high valuations in the artificial intelligence sector continue to pose concern.
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