The International Monetary Fund (IMF) has reduced its global economic growth forecast to 3.1 percent for this year, down from its earlier projection of 3.3 percent. The revision follows escalating tensions after the United States and Israel began their war on Iran on February 28, prompting Iran to close the Strait of Hormuz and attack regional energy infrastructure. These developments have disrupted oil and gas supplies, driving up global energy and food costs and hitting import-dependent economies hardest.
The IMF’s latest World Economic Outlook report highlights that the slowdown marks a decline from last year’s 3.4 percent growth. Iran’s 2026 forecast was cut by 7.2 points to a contraction of 6.1 percent, while Saudi Arabia’s growth outlook dropped from 4.5 percent to 3.1 percent. The Middle East and North Africa’s 2026 forecast was reduced to 1.1 percent, and the Middle East and Central Asia’s to 1.9 percent. The IMF also expects global inflation to rise to 4.4 percent, up 0.6 points from January.
Oil prices remain volatile, though they eased slightly on hopes of renewed US-Iran talks. The IMF warned that the conflict’s economic impact will be uneven, with low-income and emerging economies facing the greatest strain.
Share 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 said on Tuesday that it expected the global economy to g
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