The International Monetary Fund (IMF) has warned that continuing disruptions due to the war meant its global economic outlook was moving towards an “adverse” scenario, with growth reduced and higher inflation risks, Al Jazeera reported, citing a statement.
Last month, the IMF’s World Economic Outlook predicted that global growth would drop to 3.1 percent in 2026, but warned of a bleaker outlook if the war drags on.
In the “adverse” scenario, where oil prices remain higher for longer, inflation expectations become less stable and financial conditions tighten, growth would slow to 2.5 percent, warned the IMF then.
On Thursday, the fund’s chief spokesperson, Julie Kozack, said the global economy was headed towards that scenario.
“We are moving into the adverse scenario, but inflation expectations are still reasonably well anchored, and financial conditions still remain accommodative,” Kozack told reporters in Washington. –Agencies
