IMF warns of widening economic divide amid global shocks and rising inflation
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
The International Monetary Fund warned that conflicts, high energy prices, and rapid technological changes are deepening the economic divide globally. The fund forecasts overall growth of 3.1% this year and 3.4% in 2027, though it estimates inflation will rise to 4.7% this year and 4.1% next year. The report noted that the average growth figure masks a reallocation of growth across different economies.
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Why it matters
The fund stated that low-income countries dependent on oil imports and lacking competitive tech sectors face an increased risk of widening income gaps. Ongoing shocks, including the war in Ukraine, the conflict in the Middle East, and tariffs imposed by Donald Trump, are pressuring inflation and slowing growth across rich and poor nations.
From omanobserver.om
Who's involved
- Donald TrumpPresident of the United States, whose tariffs are cited as a global economic shock
- AnsarGroup whose attacks are actively impacting the geopolitical landscape of the Middle East
- Middle EastGeopolitical region where conflicts are cited as a source of inflation and slower growth
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- Saudi ArabiaSpeculative
Saudi Arabia might face instability and supply risks due to surging conflict activity in the region
Keep exploring
The entities involved
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Bangkok
capital of Thailand
- Ansar
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Donald Trump
American businessman and politician (born 1946), President of the United States (2017–2021; since 2025)
Related events
- IMF lowered growth projection for Türkiye during Annual Meetings held in Bangkok.
- Gulf attacks, CPI drivers, and strikes in Kharkiv are impacting global energy supplies and financial markets.
- In 1995, Nigeria's economic czars, Taiwo Oyedele and Jumoke Oduwole, traveled to Bangkok for an economic mission following an IMF report on Nigeria's finances.