Global economic growth is projected to slow to 2.5% in 2026, down from 2.9% in 2025, largely due to escalating tensions and rising energy prices stemming from the conflict in the Middle East. Emerging market and developing economies are particularly vulnerable, facing their slowest per capita income growth since the pandemic. The conflict involving the US and Iran is a significant contributing factor to this economic deceleration. Higher energy costs are impacting economies worldwide, hindering potential expansion. These projections suggest a challenging economic outlook for Latin America and other regions reliant on stable energy markets. The slowdown indicates a broader impact of geopolitical instability on global economic performance.