World Economic Outlook, April 2026: Global Economy in the Shadow of War

The global economy faces renewed tests as the war in the Middle East threatens to disrupt growth and disinflation.
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Volume/Issue: Volume 2026 Issue 001
Publication date: April 2026
ISBN: 9798229042758
$50.00
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Exports and Imports , Finance , Inflation , Public Finance , global growth , inflation , economic projection , risks , defense spending , economics of conflicts and recoveries , Defense spending , Emerging and frontier financial markets , Inflation , Current account , Global

Summary

After withstanding higher trade barriers and elevated uncertainty last year, global activity now faces a major test from the outbreak of war in the Middle East. Assuming that the conflict remains limited in duration and scope, global growth is projected to slow to 3.1 percent in 2026 and 3.2 percent in 2027. Global headline inflation is projected to rise modestly in 2026 before resuming its decline in 2027. Slowdown in growth and increase in inflation are expected to be particularly pronounced in emerging market and developing economies.