War Forces IMF, World Bank to Cut Forecasts
Tap title to read story
Washington — Top IMF and World Bank officials are convening this week as the Middle East war that began on February 28 prompted both institutions to downgrade global growth forecasts and raise inflation outlooks. Officials said the conflict constitutes a third major economic shock after the COVID-19 pandemic and Russia’s 2022 invasion of Ukraine.
Washington — Top IMF and World Bank officials are convening this week as the Middle East war that began on February 28 prompted both institutions to downgrade global growth forecasts and raise inflation outlooks. Officials said the conflict constitutes a third major economic shock after the COVID-19 pandemic and Russia’s 2022 invasion of Ukraine.
This week’s meetings follow public statements last week in which the institutions warned that emerging and developing economies will be hit hardest by higher energy prices, shipping disruptions and fertilizer shortages; the World Bank’s baseline now projects 3.65% growth for EMDEs in 2026, down from 4% in October, and a deeper downside if fighting persists.
More context
Timeline
- 1. 2020: COVID-19 pandemic produced a global economic downturn and policy interventions.
- 2. 2022: Russia’s full-scale invasion of Ukraine caused energy and food market disruptions.
- 3. February 28, 2026: Middle East war began, introducing new shocks to trade and energy markets.
- 4. Early April 2026: IMF and World Bank announced downgraded growth forecasts and higher inflation expectations.
- 5. Week of 12 April 2026: Finance officials gathered in Washington amid updated forecasts and risk assessments.
Why it matters
The Middle East war affects your wallet. It's pushing up energy prices and causing shipping disruptions. This means you might pay more for gas and goods. Check your budget and consider ways to save on energy.
Sources
JQJO Editorial Desk · Human reviewed · AI assisted. Report a correction.
