Business · Economy · 1 hr ago

IMF warns global economy may be nearing its limit after a run of shocks

IMF warns global economy may be nearing its limit after a run of shocks

The global economy has continued to grow despite an exceptional run of shocks over the past seven years, including war in the Middle East.

IMF chief economist Silvana Tenreyro says that resilience may soon be tested.

Growth has been supported by changes in energy supply routes and a surge in investment in artificial intelligence.

But energy reserves are shrinking, leaving supplies and prices vulnerable to further geopolitical shocks.

High government debt limits how much governments can spend to respond.

Central banks also have limited room to act because they must focus on keeping prices stable.

The warning matters because another disruption could put added pressure on an economy already facing constraints.

The IMF says further geopolitical shocks could again affect energy prices and supplies.

What people are saying

questa resilienza è sotto sforzo
Silvana TenreyroIMF chief economistvia ANSA
potrebbe presto essere messa alla prova
Silvana TenreyroIMF chief economistvia ANSA
le scorte energetiche si stanno assottigliando
Silvana TenreyroIMF chief economistvia ANSA

Sources

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