The global economy faces renewed threats of inflationary shock. According to The Financial Times, citing experts from the International Monetary Fund, the resurgence of conflict in the Middle East could disrupt global supply chains and drive up prices.
In light of geopolitical risks, the IMF has revised its macroeconomic projections for 2026. The global inflation forecast has been raised to 4.7%, while economic growth expectations have been lowered to 3%. IMF analysts note that the trend toward disinflation has stalled, and central banks worldwide may need to raise interest rates again.
The report emphasizes that the most immediate risk to the global economy now stems from the Middle East. Renewed hostilities in the region are expected to undermine global growth and exacerbate price pressures.
The situation is further complicated by the high vulnerability of trade routes. Back in April, IMF Managing Director Kristalina Georgieva warned that a blockade of the Strait of Hormuz would result in a sharp increase in food prices worldwide.
