The OECD cuts its 2026 global growth forecast, citing fallout from the ongoing Middle East conflict. In the updated outlook, the OECD warns that worsening conditions could further slow the pace of global expansion. The report links the weaker forecast to economic uncertainty and potential spillovers affecting trade, investment, and financial conditions. It also notes that the outlook depends on how long the conflict lasts and how severely it disrupts economic activity. While the exact impact is framed as conditional, the OECD indicates that if the war continues into next year, global growth could slow to around 2.1%. The OECD’s assessment reflects a broader risk environment in which geopolitical tensions can materially change macroeconomic trajectories. Overall, the update presents a more cautious 2026 growth outlook than previously expected, emphasizing that the level of disruption from the conflict remains the key driver of the downside risk.
OECD cuts 2026 global growth forecast amid fallout from Middle East conflict
The OECD cuts its 2026 global growth forecast, citing fallout from the ongoing Middle East conflict. In the updated outlook, the OECD warns that worsening conditions could further slow the pace of glo...
- The OECD reduces its 2026 global growth forecast due to fallout from the Middle East conflict.
- The outlook is conditional on the conflict continuing and affecting economic activity.
- The OECD warns that continued war into next year could slow global growth to about 2.1%.
- The report links the downgrade to potential spillovers such as increased uncertainty and disruptions to economic activity.
The OECD warned that if the Mideast war continues into next year, however, global growth could slow to 2.1%.
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