Shafaqna English– The IMF stated on Thursday that the global economy had navigated the energy shock caused by the Middle East war more successfully than many had feared, and it continues to expect global economic output to grow by around 3% in 2026.
At the same time, the Fund warned that the risks surrounding this outlook remain elevated, including the potential for further energy price spikes, prolonged geopolitical tensions, and mounting debt pressures that could collectively threaten global economic stability and dampen growth prospects.
IMF spokesperson Julie Kozack stated that oil and gas prices continue to be elevated, and the energy shock resulting from the war has not yet subsided. She also highlighted that global debt pressures are increasing, which could constrain economic growth and financial stability.
Furthermore, she noted that the disinflation process that had been progressing since the 2022 cost-of-living crisis has stalled, indicating that inflation remains a persistent challenge and that the fight against rising prices is far from over.
Source: Reuters