IMF warns global economy ‘could soon test the limits of resilience’
World Economic Outlook says states’ oil stocks are low and budgets are overstretched, as it upgrades UK GDP growth forecast for 2026 Developing nations face triple shock, UN warns 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…
The International Monetary Fund (IMF) has cautioned that the global economy could soon encounter its "limits of resilience," as oil reserves dwindle and government budgets become strained. In its latest World Economic Outlook, the IMF highlighted the depletion of emergency oil stocks and the financial difficulties that many countries face due to high debt levels and deficits.
While the Middle East conflict has not severely impacted oil prices so far, the IMF warns that a prolonged escalation or another geopolitical shock could lead to rapid transmission of price increases through supply disruptions. The largest emergency release of oil stocks on the market occurred in March, but the US strategic petroleum reserve recently dropped to its lowest level since 1982.
The IMF projected global growth at 3.1% for 2025, up slightly from its July estimate, but cautioned that the economy might "edge down" in 2027 due to higher energy prices and long-term interest rates. UK growth is forecast at 1.2% for next year, down from 1.3% previously anticipated. The IMF urged governments to act swiftly and with wisdom, emphasizing the need to replenish policy buffers and stabilize energy supplies to prevent further economic strain.
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