The International Monetary Fund (IMF) has warned that the ongoing war in the Middle East has weakened the global economic outlook, raising concerns over inflation, energy supply disruptions and slowing economic growth.
According to the IMF, the scale of the impact on the world economy will largely depend on how long the conflict lasts and how widespread it becomes.
In its latest analysis, the Fund noted that the global economy had shown signs of resilience toward the end of last year despite major trade disruptions and policy uncertainty.
The IMF explained that businesses adapted to changing economic conditions, while lower-than-expected tariffs in the United States, fiscal support measures, favourable financial conditions, strong productivity gains and the continued technology boom helped support global growth.
These factors, the IMF said, were expected to push global growth to 3.4 percent in 2026 before the recent escalation in the Middle East conflict.
However, the Fund cautioned that the war has now disrupted that momentum.
It pointed specifically to the closure of the Strait of Hormuz and severe damage to critical infrastructure in a region that plays a central role in global oil and gas supply.
According to the IMF, if hostilities continue, the world could face a major energy crisis with serious consequences for inflation, fuel prices and economic activity across several countries.
The Fund stressed that prolonged instability in the region could further darken the global outlook and increase uncertainty for governments, businesses and investors worldwide.
