August 22, 2026, Saturday
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IMF warns that economic growth may fall below 2 percent if Iran war prolongs

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Kathmandu. The International Monetary Fund (IMF) has warned that if the Iran war continues for a long time and energy prices continue to rise, the world economy could be pushed into recession. According to the IMF's "World Economic Outlook" report, the war has again increased instability in the world economy. It has been mentioned that the blockage of the Hormuz waterway has seriously affected the energy supply.

It has been warned that if the prices of oil, gas and food items remain high for the next year, the global economic growth rate may drop below two percent in 2026. IMF Chief Economist Pierre-Olivier Gorinchas said, this could create a recession-like situation in the world, due to which unemployment would increase and food insecurity would deepen.

In a severe scenario, the average price of oil is estimated to reach $110 per barrel this year and $125 in 2027. Along with this, it is mentioned that the global inflation rate may reach 6 percent in 2027.

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