OECD warns conflict could stall growth and fuel inflation
The OECD warned on Wednesday that a prolonged Middle East conflict could slow global growth to 2.1% in 2026 and push inflation higher. While the baseline scenario sees 2.8% growth next year, persistent energy disruptions may trigger recessions and force central banks to raise interest rates.
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The OECD warned global growth could drop to 1.8% by 2027 if Middle East conflict persists, potentially triggering recessions in energy-dependent nations. This protracted scenario compares to a 3.1% baseline growth projection for the same period. The organization expects higher energy prices to add 1.3 percentage points to global inflation in a prolonged disruption.
