OECD Cuts Global Growth Outlook to 2.8% Amid U.S.-Iran War

AI Summary

The OECD has reduced its global growth forecast, projecting a decline from 3.4% in 2025 to 2.8% in 2026 due to the U.S.-Iran war's economic impact. In a severe scenario, growth could drop to 2.1% in 2026 and 1.8% in 2027 if disruptions continue, potentially leading some economies into recession. The report highlights the risks of increased inflation and unemployment, particularly impacting developing economies. A durable peace agreement is deemed essential to alleviate economic tensions, as ongoing disruptions could significantly harm global markets.