The biggest supply shock in more than 50 years..
Bloomberg:
The decision by US President Donald Trump and Israel Prime Minister Benjamin Netanyahu to wage a surprise war on Iran, and the global energy crisis triggered by its retaliation, has damaged two-thirds of the world’s economies.
This from the World Bank, which on Thursday cut its outlook for growth in part because of the war’s disruption of commodity flows and rising import costs. The global economy will expand 2.5% in 2026, it said, the slowest pace since the Covid-19 pandemic caused a global recession in 2020.
“This is the biggest supply shock in more than 50 years,” said Chief Economist Indermit Gill. “If the conflict persists, the next thing that will be affected is food prices.”
The bank said risks to its outlook are skewed to the downside. Global growth could fall to 1.3% this year if “energy supply disruptions prove more severe than assumed and are accompanied by substantial financial stress.” —
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The biggest supply shock in more than 50 years.....[more]