IMF Warns of Global Recession

The IMF's latest Fiscal Monitor report highlights the severe economic risks posed by the ongoing US-Israel war with Iran.

Chief economist Pierre-Olivier Gourinchas warned that further disruptions to the Strait of Hormuz could lead to an unprecedented energy crisis and tighter financial conditions.

The fund noted that global government debt is now expected to match annual output by 2029, a year earlier than previously projected.

Developing nations, particularly in Africa and Latin America, are facing the brunt of these inflationary pressures and rising borrowing costs.