UN cuts global growth forecast over Iran war shock
The United Nations cut its global growth forecast to 2.5% for 2026 from an estimated 3% last year, citing higher energy costs and weaker trade linked to the US-Israel war on Iran.
In its latest World Economic Situation and Prospects report, the UN warned that low-income households in developing countries are being hit hardest as rising food and energy prices consume a larger share of spending while wages fail to keep pace.
According to the UN, some of the sharpest economic shocks are being felt in Western Asia, driven not only by higher energy prices but also by infrastructure damage and severe disruptions to oil production, trade and tourism caused by the conflict.
