IMF warns war involving Iran, Hormuz disruptions threaten world economy
The IMF is sounding the alarm: the ongoing energy crunch, sparked by a war involving Iran and shipping disruptions in the Strait of Hormuz, could seriously hurt the world economy.
Asian countries are being urged to boost their financial defenses, with shortages already pushing Southeast Asia into energy-saving mode.
IMF cuts 2026 growth to 3.1%
The IMF has cut its 2026 global growth forecast to 3.1% and warns things could get worse if the crisis drags on.
Their advice? Offer targeted help for people hit hardest by high energy prices.
Countries like Thailand and China, where prices are actually falling, should hold off on tightening money policies, while Australia needs to act fast against rising inflation.
The Philippines is already tightening up to fight inflation, but the IMF cautions not to go overboard since more shocks (like food supply issues) could be ahead.