IMF warns global economy is drifting toward downside scenario as oil prices rise
International Monetary Fund spokeswoman Julie Kozack said the global economy is drifting toward a downside scenario as oil prices rise on the back of the war in the Middle East. The IMF signalled it may revise growth forecasts in the coming period.
International Monetary Fund spokeswoman Julie Kozack told reporters in Washington that the global economy is moving toward a downside scenario, citing the war in the Middle East and the resulting rise in oil prices. Kozack said that brent crude staying durably above $100 could push inflation back up across many regions.
Last month's IMF World Economic Outlook update set 2026 global growth at 2.7 percent. The spokeswoman implied that the July interim update could revise that figure downward if current conditions persist. Kozack noted that emerging economies are particularly fragile, as elevated debt-service costs limit their ability to absorb a fresh energy shock.
The IMF urged central banks to remain data-dependent as they continue easing cycles, warning against rushing rate cuts while inflation risks linger. Kozack also stressed that investment in the energy transition must not stall. Risks around the Strait of Hormuz are placing additional pressure on global supply chains.
More from Europe
Türkistan ready to host Turkic world leaders for informal summit
The informal summit of the Organization of Turkic States will convene in Türkistan, Kazakhstan, under the theme "Artificial Intelligence and Digital Development." Preparations are complete for the gathering hosted by President Tokayev of Kazakhstan.
CBRT April Inflation Assessment: Annual inflation rises to 32.37 percent
The Turkish Central Bank released its April inflation assessment, showing consumer prices rose 4.18 percent month-on-month, while annual inflation climbed to 32.37 percent—up 1.50 percentage points. Energy prices surged 14.4 percent, with the underlying trend moving higher.
Airlines can cancel flights in advance over fuel shortages under new plans
Under new UK government plans, airlines can cancel flights in advance due to fuel shortages rather than wait until the last minute. This allows passengers time to rebook and make alternative arrangements.