The HRI now projects a real GDP growth of only 0.5% for the current year, a significant decrease from earlier estimates of 0.7% to 0.8%. For 2027, the forecast has been adjusted to a mere 0.3% growth. The institute attributes this bleak outlook to the ongoing repercussions of the Iran conflict, which are expected to manifest through supply chain disruptions, rising energy costs, and increased production expenses. Consequently, stagnation is anticipated in the second quarter, followed by a slight contraction in the latter half of the year, leading to a technical recession.