IMF: Risk of global inflation and recession is serious

Pars Today – The spokesperson for the International Monetary Fund (IMF) stated that the global economy is moving toward an unfavorable scenario and stressed that the risks of inflation and global recession are serious.

According to Pars Today, citing IRNA, IMF spokesperson Julie Kozack said that the continuation of the war in West Asia and the resulting disruptions have darkened the global economic outlook, and the world is rapidly moving toward an adverse scenario in which growth slows while inflation intensifies.

She noted that, according to the IMF’s latest report, in this downside scenario—which is currently unfolding—the global economic growth rate will fall from 3.1% to 2.5%. She added that with the continuation of the war, it is no longer possible to rely on the previous optimistic scenario.

Julie further stated that the International Monetary Fund has also projected a more severe scenario in which, if the crisis is prolonged, inflation could rise to 6%. She added that under such conditions, the prices of food, medicine, and other essential goods would increase sharply.

The IMF spokesperson emphasized that rising fertilizer prices typically lead to higher food prices within about six months, and that many countries have requested emergency assistance from the Fund.

Meanwhile, the economic magazine The Economist, in a report referring to the largest oil supply shock in history and the suspension of Iran–US peace talks, warned that the current calm in oil markets is misleading, and that there is a high likelihood of a rapid and uncontrollable surge in oil prices in the coming weeks.