UN cuts global growth forecast, blaming Middle East crisis

Key points

• UN economists forecast global GDP to grow 2.5 percent in 2026 and 2.8 percent in 2027. The United Nations has cut its growth forecast for the global economy, citing the fallout of the war on Iran.
• Global gross domestic product (GDP) is expected to grow 2.5 percent this year and 2.8 percent in 2027, the UN’s Department of Economic and Social Affairs said in its latest forecast on Tuesday.
• UN economists in January forecast growth of 2.7 percent in 2026 and 2.9 percent the following year.
• The UN’s economic division cited rising energy prices due to the closure of the Strait of Hormuz and volatility in financial markets as reasons for the downgrade.
• Shantanu Mukherjee, director of economic analysis at the department, said what began as a “blow to energy markets” when the United States and Israel started the war on February 28 had turned into a “broader supply shock...