IMF Warns Middle East War Could Derail Global Economic Growth

The energy crisis sparked by the war in the Middle East remains the biggest risk for the global economy, but investment in artificial intelligence provides grounds for optimism, the International Monetary Fund has said, expecting global growth of 3.4% next year. "The global economy has been resilient, but that resilience is reaching its limits, so we need to move from just coping to rebuilding," the institution's chief economist, Silvana Tenreyro, told the media, as quoted by Reuters. "We need to restore fiscal space. We need to rebuild supply-side resilience," Tenreyro also said. The Middle East war has fueled inflation through soaring prices for energy commodities that are spilling over the broader economy. However, government action to cushion the blow has worked to curb the risks of major pain, according to another IMF official.