IMF warns global economy ‘could soon test the limits of resilience’
Source: The Guardian ·
World Economic Outlook says states’ oil stocks are low and budgets are overstretched, as it upgrades UK GDP growth forecast for 2026Developing nations face triple shock, UN warnsThe global economy “could soon test the limits of resilience”, as emergency oil stocks run low and government budgets become overstretched, the International Monetary Fund has warned.In its twice-yearly World Economic…
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The global economy “could soon test the limits of resilience”, as emergency oil stocks run low and government budgets become overstretched, the International Monetary Fund has warned. In its twice-yearly World Economic Outlook, the IMF said global growth had withstood the Middle East conflict better than feared over the past six months. It said the rerouting of oil supplies away from the strait of Hormuz, and the release of strategic energy stocks, had helped to contain the impact on oil prices from the US-Iran war. However, it warned that emergency stocks are now depleted, and high debt levels and deficits in many countries could leave governments with little capacity to protect consumers from any future jump in prices. “Without shoring up supply capacity and replenishing policy buffers, the global economy could soon test the limits of resilience,” it said. “Inventories in energy markets are dwindling and additional geopolitical shocks could still transmit rapidly through prices and…