Middle East War Deteriorates Economy, BI Governor Forecasts Only 3%

Jakarta, CNBC Indonesia - The conflict in the Middle East between the United States (US) and Israel with Iran has the potential to further weaken global economic growth prospects.

This was stated by Bank Indonesia Governor Perry Warjiyo during a press conference following the April 2026 Board of Governors meeting.

“The war in the Middle East is increasingly worsening global economic prospects,” said Perry during the online press conference on Wednesday (22/4/2026).

He stated that economic growth could become even weaker, heading towards a level of 3% from the previous range of around 3.1%.

This is particularly due to the ongoing effects of the conflict, which have driven up prices of energy commodities such as global crude oil, disrupting global supply chains.

“Global economic prospects are at 3% for 2026, down from the previous 3.1%,” Perry emphasised.

He added that inflationary pressures are also likely to rise at the global level to 4.2% from the previously estimated 4.1%.