OECD cuts global growth forecast on protracted Middle East conflict

In its latest Economic Outlook report released on June 3, the Organization for Economic Co-operation and Development (OECD) cut projections for global economic growth this year, saying that the conflict in the Middle East has become the dominant force shaping the global economic outlook and is putting pressure on global economic growth.

The OECD said the conflict situation in the Middle East remains unclear, and global growth prospects hinge largely on how long the hostilities last. If energy prices gradually ease from mid-2026 onward, global economic growth is projected to slow from 3.4% in 2025 to 2.8% in 2026, before recovering to 3.1%