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A vulnerable global economy, already set to slow this year and next, is facing new challenges from an escalating war between Israel and Hamas that could upend geopolitics in the Middle East and send energy costs higher.
Oil prices jumped by as much as 5 percent over the weekend as markets braced for further disruptions to the energy supply. The headwinds add new uncertainty when the world economy is already reeling from weakness in China, mounting recession risks in Europe and the ongoing war in Ukraine.
The International Monetary Fund on Tuesday said it expects global growth to slow from last year’s 3.5 percent to 3 percent this year and 2.9 percent in 2024. The economic recovery from the coronavirus pandemic and Russia’s invasion of Ukraine has been “slow and uneven,” the group said.
“The global economy is limping along, not sprinting,”…
