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The International Monetary Fund (IMF) said on Thursday that the global economy has weathered the energy shock caused by the war in the Middle East better than expected.
It noted that global economic output is still expected to grow by about 3 percent in 2026, but warned that risks remain elevated, according to CNN.
Julie Kozack, spokesperson for the IMF, said that oil and gas prices remain high, and that the energy shock resulting from the war is not yet over.
She added while speaking to reporters that global debt pressures are increasing, while the disinflation process associated with the cost-of-living crisis that began in 2022 has stalled.
During the IMF's regular press briefing, Kozack pointed out that global inflation expectations have risen, but remain well-anchored in the long term.
The Fund raised its global inflation forecast for 2026 to 4.7 percent, an increase of 0.3 percentage points from its previous forecast, after energy prices became about 25 percent higher than pre-war levels.
In its projections, the Fund assumed that the Strait of Hormuz would begin to gradually reopen, and that shipping traffic would return to normal levels by March 2027.
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