Iran war impacts global growth forecast, IMF warns of economic slowdown

AP News AP News —

The Iran war has stalled the world’s economic momentum this year, likely pushing growth lower compared to 2025, the International Monetary Fund warned Tuesday.

The IMF downgraded its forecast for global growth to 3.1% in 2026 from the 3.3% it had forecast back in January.

The expected growth would mark a deceleration from a 3.4% expansion in 2025.

Citing higher energy prices caused by the war, the IMF marked up its expectation for global inflation this year to 4.4% from 4.1% in 2025 and from the 3.8% it had forecast for this year in January.

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