IMF Warns of Global Recession

The IMF's latest Fiscal Monitor report highlights a stark warning for the global economy, projecting that government debt could match annual output by 2029.

The conflict in the Middle East is driving up borrowing costs and inflation, with the IMF raising its global inflation forecast to 4.4 percent.

Chief economist Pierre-Olivier Gourinchas noted that a prolonged closure of the Strait of Hormuz would lead to tighter financial conditions and significantly weaker growth.

Large economies like China and the US are expected to drive the sharpest rise in debt over the remainder of the decade.