IMF cuts global growth forecast on war impact

The International Monetary Fund has revised its World Economic Outlook, lowering its 2026 global GDP growth forecast to 3.1%, down from the 3.3% projected in January. The fund also raised its inflation forecast, pointing to a surge in energy and food prices driven by the ongoing conflict in the Middle East. Analysts warn that the oil shock is slowing economic recovery and undermining consumer demand worldwide, with risks tilted toward further deterioration if geopolitical tensions persist.