NEW YORK: The UN on Tuesday warned that the Iran war has dealt a fresh blow to the global economy, dragging down growth forecasts, reviving inflationary pressures and threatening hard-won gains across the developing world.
Presenting the mid-2026 update of the World Economic Situation and Prospects report at the organization’s headquarters in New York, senior officials from the UN Department of Economic and Social Affairs said the fallout from the conflict has spread far beyond energy markets, creating a broader supply shock affecting trade, public finances and food security.
“What began as a blow to energy markets on Feb. 28 has turned into a broader supply shock of uncertain scope, magnitude and duration,” said Shantanu Mukherjee, director of DESA’s Economic Analysis and Policy Division.
The UN now forecasts global economic growth at 2.5 percent in 2026, down from earlier projections, with a modest recovery to 2.8 percent expected in 2027.
Officials cautioned that the outlook remains highly uncertain and could deteriorate further if disruptions in energy markets persist.
