Growth forecasts slashed as war risks a recession

UK economic growth forecasts for the next two years have been slashed and inflation will be higher than previously expected as the Iran war threatens to throw the global economy “off course”, the International Monetary Fund (IMF) has warned.

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The influential financial body said on Tuesday that a global recession could be a “close call” in a severe scenario, which would see further turmoil linked to the conflict.

The IMF laid out its first set of forecasts since the global economy was rocked by the conflict between US-Israeli and Iranian forces since the end of February.

Oil and gas prices have surged higher in the following weeks, with energy production and transporting impacted by attacks on facilities and the blockade of the Strait of Hormuz.