IMF warns of global recession

The IMF's latest World Economic Outlook paints a grim picture of the global economy as energy supply shocks from the Middle East drive up inflation.

The fund reduced its 2026 growth projection to 3.1%, noting that the United Kingdom is expected to suffer the most severe impact among G7 nations.

High energy and fertilizer costs are particularly threatening to developing economies, which face immediate food security risks.

Chief Economist Pierre-Olivier Gourinchas warned that a prolonged conflict involving major infrastructure damage could make current inflationary pressures uncontrollable.