S&P warns global growth could slow to 3.2% in 2026 as West Asia conflicts spark what it calls the largest energy shock on record. The crisis is disrupting shipping lanes and energy distribution, rippling into international trade and raising costs across supply chains.
The IMF has trimmed its 2026 global growth forecast, citing the ripple effects of the war in the Middle East. It links the downgrade to a major oil price shock and warns that higher energy and food costs could push inflation upward, complicating the outlook for economies already facing fragile demand and tighter budgets.
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RBI Governor Shaktikanta Das cautioned that inflation pressures are spreading globally even as trade trends move toward deglobalization. With risks to the global economy rising, multilateral institutions like the IMF have lowered growth projections and flagged recession dangers, raising uncertainty for policymakers and markets alike.
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