OECD: prolonged Iran conflict could trigger global recession wave
The OECD warns that if the US-Iran standoff drags into 2027, world GDP growth could halve and push several economies into contraction.
The OECD forecasts that a prolonged conflict between the US and Iran extending into 2027 could slash global GDP growth to 2.1% from 3.4%, triggering multiple recessions and energy shortages. For CEOs and CFOs, this scenario demands immediate contingency planning for supply chain disruption, higher energy costs, and declining consumer demand in vulnerable markets.
The Organisation for Economic Co-operation and Development (OECD) has dropped a sobering scenario: if the US-Iran conflict drags on into 2027, the global economy could face a wave of recessions. In its latest Economic Outlook, the Paris-based club of industrialized countries projects that world GDP growth would fall to just 2.1% this year, down sharply from 3.4% in 2025. That is not a slow stumble, it is a near-halving of global expansion, one that the OECD says would push several individual economies into outright contraction.
This story's Key Insights and Take-aways are locked.
Create a free account to unlock Executive Actions for one credit.
Register to UnlockAlways free for Executives Club members. Join the Club
More in Business
Patrick Stewart, Star Trek's Picard, dies at 86 with one final role still to come
The beloved actor's last screen appearance lands Dec. 18 in 'Avengers: Doomsday' - a posthumous curtain call that will test the pull of a two-franchise icon.
Binance scrambles to claw back $6.3B stolen in North Korea-linked hack
The world's largest crypto exchange faces the biggest heist on record, and the recovery effort will test the limits of blockchain forensics.
North Korea's TraderTraitor unit blamed for Binance's record $6.3bn heist
The largest crypto theft on record has rattled markets, slashed billions from token values, and put Binance's security revamp under the spotlight.