UN Warns Global Growth Will Slow as Iran War Continues

As conflict in the Middle East drives up energy costs and clouds economic outlooks, the United Nations warned that the global economy faces one of its weakest years since the 2008 financial crisis, with Europe among the hardest hit.

The United Nations warned that rising energy prices linked to the Iran conflict could weaken global economic growth in 2026.

The UN lowered its global growth forecast and raised inflation projections for 2026, citing the Middle East conflict and rising oil prices, Una Hajdari reported for Euronews.

UN economists now project global GDP growth at 2.5% in 2026, down from 2.7% forecast in January, and warned it could slow further to 2.1% under a more adverse scenario.

That would represent one of the weakest growth performances this century outside the COVID-19 pandemic and the 2008 global financial crisis, according to Shantanu Mukherjee, director of economic analysis at the UN Department of Economic and Social Affairs.

“We are not close” to a recession, Mukherjee said, though he warned that billions of people could face worsening economic conditions and some countries may experience contractions.

Global inflation is projected to rise to 3.9% this year, 0.8 percentage points higher than forecasts issued in January.

The report cited rising energy prices following the Iran conflict and disruptions involving the Strait of Hormuz, a key shipping route for oil, natural gas, fertilizer, and petroleum products.