The IMF has lowered its 2026 global economic growth forecast by 0.2 percentage points to 3.1%, citing the impact of the ongoing Middle East conflict, per its latest World Economic Outlook. The downgrade reflects a 13% drop in daily oil flows and a 20% decline in liquefied natural gas traffic, driving up energy prices. If the conflict persists, global growth could fall to 2.5% with inflation rising to 5.4%. The eurozone forecast was cut to 1.1%, with Germany and the UK both at 0.8% and the US at 2.3%. Global inflation is projected at 4.4% in 2026, up from 4.1% in 2025.

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