Key facts
- The global economy faces multiplying risks.
- Energy prices remain elevated.
- The IMF warns of rising debt, energy, and AI risks.
The global economy is facing a constrained environment with limited room for policy action as a result of persistent energy price shocks and a growing list of interconnected risks. While many countries managed to cushion the immediate blow from the energy crisis triggered by the war in Iran, elevated prices continue to exert pressure. The International Monetary Fund (IMF) has highlighted a confluence of challenges, including rising debt levels, ongoing energy market volatility, and the burgeoning risks associated with artificial intelligence, which are collectively straining global economic stability.