Dawn
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15:07 Apr 14, 2026
The International Monetary Fund (IMF) cut its 2026 global growth projection on Tuesday, warning that the world economy could be “thrown off course” by war in the Middle East — as the conflict roils commodity markets and sparks higher prices. The global economy is set to grow by 3.1 per cent this year, said the IMF in its World Economic Outlook report, released during its spring meetings in Washington. This is down from 3.3pc forecast in January before hostilities erupted on February 28 with US-Israeli strikes against Iran that prompted Tehran’s retaliation and sparked a broader conflict in the region. “We were planning to upgrade growth for 2026 to 3.4pc” if not for the war, IMF chief economist Pierre-Olivier Gourinchas told AFP. Prices of oil, gas and fertilisers have surged, as Iran virtually blocked traffic through the Strait of Hormuz, a key shipping waterway. US President Donald Trump has also ordered a naval blockade around Iran’s ports. The IMF expects higher inflation this year at 4.4pc, 0.6 percentag...