The International Monetary Fund (IMF) issued a dismal economic outlook for the month of April on Tuesday, citing concerns about rising inflation amid the war in Iran.
Economists warned that even if the conflict remains limited in duration and scope, global growth is projected to slow to 3.1 percent this year and 3.2 percent in 2027.
Countries are likely to face increased costs for energy and gas amid other resources as international trade reflects the impact from the closure of the Strait of Hormuz.
“As in past commodity price surges, energy importers are highly exposed, with low-income developing countries— particularly those with preexisting macroeconomic vulnerabilities and limited buffers—likely to be hit hardest,” the IMF report stated.
“Gulf region energy exporters are also likely to suffer, reflecting conflict-related damage and production closures, export constraints, and weaker tourism and business activity, while countries supplying migrant workers may face remittance losses,” they added.
