World economy resilient to Middle East war shock, agencies say

WASHINGTON- The global economy has been broadly resilient to the shock from the war inthe Middle East, the heads of the International Energy Agency, International Monetary Fund, World Bank Group and World Trade Organization said in a joint statement on Wednesday.

The leaders, who have been meeting regularly to assess the impact of the war,called for further progress toward a resolution to the conflict and the reopening of the Strait of Hormuz, noting that the war was causing deeper concerns about growth and price stability.

"Uncertainty remains high, and the impacts of the war could linger. Energy markets and transit of goods are still facing strains," the statement said.

The leaders pledged to continue working together and with their respective members to monitor energy, trade and economic developments while strengthening their readiness to act further if needed. Support to countries could include helping them build greater energy, food, trade and economic resilience, they said.

The IMF is forecasting that global growth will drop to 3% in 2026 from 3.5% in 2025 as a result of the war before rebounding to 3.4% in 2027.

(Reporting by Gursimran Kaur in Bengaluru and Andrea Shalal in Washington; Editing by Mark Porter/REUTERS)