IMF warns of global recession

The International Monetary Fund has cut its global growth outlook to 3.1%, warning that the world economy is at risk of a recession if the Iran war persists.

The fund highlighted that energy price spikes and supply chain disruptions are hitting the United Kingdom and the Eurozone particularly hard.

In an adverse scenario where oil remains above $100 per barrel, global growth could plunge to just 2%.

Chancellor Rachel Reeves noted that the conflict will come at a significant cost to the British economy, which faces the sharpest downgrade among G7 nations.