The IMF has issued a stark warning that the escalating war with Iran is pushing the global economy toward a recession. In its latest update, the Fund cut growth forecasts across the board, noting that the conflict is driving up inflation and causing chaos in financial markets.
The UK is expected to take the hardest hit among G7 nations, with its growth forecast slashed to just 0.8% as energy costs soar. While oil prices have fluctuated around the $100 mark, the IMF warned that a “severe scenario”—involving a prolonged war and oil staying above $110—would trigger a full-blown global recession.
In response, UK Chancellor Rachel Reeves is heading to Washington to push for a coordinated international response, though she admitted that while the war isn’t Britain’s choice, the “national interest” requires a tough economic response to keep interest rates and inflation from spiraling further.–Ali