New Delhi: In its latest global outlook commentary, Moody’s Analytics has said that while India will continue to be the fastest-growing major economy in 2026 and 2027, it “will lose a step, too”.In its report titled Global Outlook: Running Hot, Running Cold, the agency has said it is expected that the global economy will grow at 2.5% in 2026 and 2.8% in 2027, both short of the more than 3% growth that the world is capable of, reported Business Standard.Meanwhile, Moody’s Ratings, which is the sister arm of Moody’s Analytics, in May lowered its growth forecast for India to 6% from 6.8 per cent for 2026.“Geopolitical upheaval and trade disruptions, from the Middle East conflict to friction between the US and its trading partners, have driven up prices and the cost of doing business. Even if commodity flows eventually return to something like their pre-conflict norms, the economic damage is done,” said the report, highlighting the impact of the continuing West Asia Crisis on the global economy.Moody’s Analytics also said that a fresh spate of volatility in the Middle East, or a prolonged disruption to commodity flows through the Strait of Hormuz, will result in oil prices increasing well above the baseline, lifting inflation and hurting growth.“Such a shock would sharpen the trade-offs facing central banks—cut rates to support the real economy and risk faster inflation, or raise rates to curb inflation and inflict more damage on growth,” said the report.South Asian Countries at more risk if Strait of Hormuz remains closedOn the other hand, the International Energy Agency has highlighted the risks for Asian economies if the Strait of Hormuz remains closed much longer, reported Bloomberg.“We may again have some difficulty for global economies, including those in the region and developing nations and Asia,” Fatih Birol, the executive director of the International Energy Agency, told Bloomberg Television in an interview.Birol added that even though the disruption to Persian Gulf energy and feedstock deliveries has impacted economies including as South Korea and Japan, countries such as Bangladesh, Pakistan and India are much more vulnerable to such cutoffs.