Pakistan, June 4 -- The war in the Middle East has dented economic growth prospects worldwide, with a more severe shock likely if no effective ceasefire is agreed before 2027, the OECD warned Wednesday.

Global economic growth is now forecast to slip to 2.8 percent for 2026 if Gulf exports of oil and gas return to pre-conflict levels in the third quarter, the group of 38 industrialised countries said in its quarterly update.

Previously the OECD had forecast full-year global growth of 2.9 percent.

But if the Mideast war continues into next year, however, global growth could slow to 2.1 percent, the OECD said - well below the average annual growth of 3.4 percent seen from 2013 to 2019, before the Covid pandemic. "The longer the disruption...