IMF warns that the global economy is at risk of recession if Middle East war continues

The International Monetary Fund, IMF, has warned that the global economy is at risk of recession if the United States /Israel war with Iran continues and high energy prices persists.

In its World Economic Outlook Report, the IMF said in a worse case scenario where oil, gas and food prices spike and remain high this year and next, global growth could fall below 2% in 2026.

The IMF said this would mean a close call for a global recession which has happened only four times since 1980, most recently during the Covid Pandemic.

IMF Chief Economist Pierre Olivier Gourinchas outlined three scenarios: short lived conflict, adverse and severe.