July 8 (UPI) — The International Monetary Fund projected Wednesday that the global economy will experience a sharp slowdown from the impact of the Iran war.
The war’s impact on global energy reserves and inflation delivered another hit to the global economy as it was still recovering from the effects of the COVID-19 pandemic and the Russian invasion of Ukraine. IMF forecasts that global output growth, a measure of gross domestic product change, will fall from 3.5% to 3% this year.
A preliminary peace agreement between the United States and Iran offered brief hope of a turnaround for global energy. However, Iran has resumed attacks on the Strait of Hormuz, ushering in further uncertainty.
The July forecast is based on data that precedes the latest hostilities between the United States and Iran.
During the NATO summit in Turkey Wednesday, President Donald Trump shared doubt that the ceasefire with Iran remains intact, saying “I think it’s over.”
IMF is an international financial institution based in Washington, D.C. It has 191 member countries.
Britain’s economic outlook has improved while the IMF projects other G7 countries’ economies to cool or remain the same as in its April forecast. Gross domestic product is projected to grow by 1% in Britain, a 0.2% increase over its projection in April.
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