IMF warns of global recession

The International Monetary Fund has issued a stark warning that the ongoing war in Iran poses a systemic threat to the global economy, potentially leading to a recession if hostilities do not cease soon.

Managing Director Kristalina Georgieva noted that the conflict is driving up inflation and borrowing costs, particularly for vulnerable nations in Africa and Asia.

The IMF's latest report suggests that global government debt could match annual output by 2029, a year earlier than previously projected.

Policymakers are being urged to avoid broad fuel subsidies and instead focus on targeted support to navigate the current energy shock.