IMF says global economy navigating Middle East energy shock better than expected

Amman, Sept. 10 (Petra) — The International Monetary Fund (IMF)
stated on Thursday that the global economy has weathered the energy
shock resulting from the war in the Middle East better than
anticipated.

Global economic output is still projected to grow by approximately
3.0% in 2026, though elevated risks persist, CNN reported, citing the
fund.

IMF spokesperson Julie Kozack noted that oil and gas prices remain
high, emphasizing that the war-induced energy shock has not yet
concluded.

Speaking to reporters, Kozack said global debt pressures are
intensifying, while the disinflation process linked to the
cost-of-living crisis that began in 2022 has plateaued.

During the IMF’s regular press briefing, Kozack indicated that global
inflation forecasts have risen, though long-term inflation
expectations remain well-anchored.

The fund raised its 2026 global inflation forecast to 4.7%, up 0.3
percentage points from its previous projection, after energy prices
settled roughly 25% above pre-war levels.

The IMF’s baseline projections assume a gradual reopening of the
Strait of Hormuz, with maritime traffic expected to return to normal
levels by March 2027.

//Petra// AF