IMF warns of global recession

In its latest World Economic Outlook, the IMF cautioned that a prolonged disruption of energy flows through the Strait of Hormuz could trigger a global recession on an unprecedented scale.

High energy costs are fueling a new wave of inflation, complicating the efforts of central banks to manage interest rates without stifling recovery.

The report highlights that emerging economies are particularly vulnerable, with millions at risk of falling into poverty due to rising food and fuel prices.

Analysts suggest that the global economy is entering a 'stagflationary shock' that may persist for the remainder of the 2026 fiscal year.