IMF warns that US-Israel war on Iran could trigger global recession
The International Monetary Fund says the US-Israel war on Iran is already weighing on the global economy.Officials say even if the war ends now, global growth will still decline slightly this year.
In a prolonged scenario, with further damage to energy infrastructure, growth could slow to around 2 percent.
Inflation may also rise sharply, potentially exceeding 6 percent next year.
The IMF warns tighter financial conditions could deepen the slowdown, requiring monetary and fiscal intervention.
Oil-producing countries in the region are expected to face significant disruption due to the war’s impact on energy supplies.
Developing nations are likely to be hit hardest, with the economic impact nearly twice as severe as in the United States.
Al Jazeera Patty Culhane reports from outside the IMF headquarters in Washington, DC.
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