world-economy

Middle East Conflict Poses Greater Risk to Global Growth Than Inflation, Central Bankers Warn

Central bank officials across major economies are increasingly concerned that Middle East tensions threaten economic growth more than price stability, according to recent policy statements. Poland's monetary authorities highlighted potential disruptions to expansion. Counterparts in Japan, France, India and Chile expressed similar concerns about the conflict's ripple effects on their respective economies. French business surveys showed early signs of economic strain from geopolitical pressures. Japanese policymakers flagged upside inflation risks and signaled the possibility of a rate hike. India's inflation data came in below forecasts despite six consecutive months of increases, suggesting growth may be the primary worry. Chilean economic activity rebounded in March after a weak quarter. Yet central bankers there warned of more adverse impacts ahead. The collective assessment signals policymakers are bracing for slower growth globally while managing persistent price pressures tied to supply chain disruptions.