IMF warns of global recession

The International Monetary Fund's latest World Economic Outlook report warns that the conflict between the U.S., Israel, and Iran has "abruptly darkened" the global economic landscape.

Growth projections for 2026 have been cut to 3.1%, with the possibility of falling to 2% if energy infrastructure sustains further damage or the Strait of Hormuz remains closed.

High energy costs are expected to keep inflation elevated, complicating the efforts of central banks to implement planned interest rate cuts.

The IMF emphasized that roughly 45% of the world's population now lives in countries affected by conflict, creating a "government debt doom loop" for many emerging economies.