IMF Warns of Global Recession

In its latest World Economic Outlook, the IMF warned that the conflict in the Middle East has abruptly darkened the global financial horizon.

The fund reduced its growth projections, noting that the United Kingdom and other G7 nations face particularly sharp downgrades due to energy price volatility.

If the Strait of Hormuz remains blocked for more than six months, analysts predict global growth could plunge to 2%, a rate typically seen only during deep recessions.

The report emphasizes that ballooning government debt and supply chain disruptions are leaving emerging economies especially vulnerable to this unprecedented energy shock.