Global economy at risk of recession if Iran war persists, warns IMF
In its World Economic Outlook report, the IMF said in a worst case scenario - where oil, gas and food prices spike and remain high this year and next - global growth could fall below 2% in 2026. Kenya breaking news | Kenya news today |..
✨ Key Highlights
The International Monetary Fund (IMF) has warned that the global economy faces a recession risk if the war with Iran persists, leading to sustained high energy prices.
- In a worst-case scenario, global growth could fall below 2% by 2026, a level not seen since the Covid pandemic, potentially triggering a global recession.
- The IMF's warning comes as energy prices have surged due to the conflict affecting the critical Strait of Hormuz shipping route.
- The UK is forecast to be the hardest hit advanced economy, with its growth estimate for this year cut to 0.8%.
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Global economy at risk of recession if Iran war persists - April 2026
The International Monetary Fund warned that the global economy faces a recession risk if the war with Iran persists, leading to sustained high energy prices. Oil prices eased on Tuesday as hopes of new peace talks between the US and Iran emerged following President Donald Trump's announcement that Tehran had contacted Washington about a potential agreement. Britain's total retail sales saw a significant increase of 3.6 percent year-on-year in March, driven by robust food sales according to the British Retail Consortium. Separately, the Kenyan government is partnering with private sector investors to establish a strategic petroleum reserve in Mombasa, aiming to enhance energy security and mitigate the impact of global supply shocks.
