The war in Iran is set to weigh on global growth this year, the OECD forecast Thursday, knocking the world’s economy off a path of strong expansion.
The global economy was set for stronger-than-expected growth before the conflict began, but the near-halt to energy shipments from the Gulf “could result in lower growth and higher inflation,” the organization’s chief said: Inflation in the US could reach more than 4%, according to the forecast.
Business surveys this week showed the conflict is already dampening activity because of uncertainty and expectations of stalled deliveries and higher costs.
It is “ringing stagflation alarm bells,” particularly in Europe, an S&P Global economist said.
