Chairman of the Securities and Exchange Commission Paul Atkins speaks during a panel on market-based finance during the 2026 Annual International Monetary Fund Spring Meetings in Washington, D.C., on April 13. File Photo by Bonnie Cash/UPI | License Photo
July 8 (UPI) -- The International Monetary Fund projected Wednesday that the global economy will experience a sharp slowdown from the impact of the Iran war.
The war's impact on global energy reserves and inflation delivered another hit to the global economy as it was still recovering from the effects of the COVID-19 pandemic and the Russian invasion of Ukraine. IMF forecasts that global output growth, a measure of gross domestic product change, will fall from 3.5% to 3% this year.
A preliminary peace agreement between the United States and Iran offered brief hope of a turnaround for global energy. However, Iran has resumed attacks on the Strait of Hormuz, ushering in further uncertainty.
The July forecast is based on data that precedes the latest hostilities between the United States and Iran.
