(AURN News) — The global economy is taking a hit, and it’s being driven by the conflict in the Middle East.
The International Monetary Fund has downgraded global growth to 3.1% for 2026, down from 3.3% just a few months ago, warning that the conflict with Iran is disrupting energy markets and pushing inflation higher.
Global inflation is expected to rise to 4.4% this year, fueled largely by surging oil prices and supply chain instability.
If oil climbs to around $110 a barrel, the IMF says global growth could fall to 2% — recession territory.
Meanwhile, in the U.S., growth is slightly downgraded to 2.3%, with higher gas prices continuing to hit consumers.
At the same time, the IMF is raising concerns about rising defense spending, which could drive deficits higher and cut into social programs.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.
