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The International Monetary Fund (IMF) has lowered its global economic growth forecast and warned that a prolonged conflict involving Iran could push the world economy to the brink of recession.
IMF revised global growth for 2026 down to about 3.1% from earlier projections of around 3.3% citing rising geopolitical tensions and disruptions to global energy markets.
The downgrade follows escalating conflict in the Middle East, which has disrupted oil supply routes, particularly through the strategic Strait of Hormuz, a key artery for global energy shipments.
At the same time, inflation is expected to rise to around 4.4 percent globally, driven largely by surging oil, gas and fertiliser prices.
For Zimbabwe, the IMF warning carries significant implications, particularly as the country remains heavily dependent on imported fuel and vulnerable to global price shocks.
The IMF warned that low-income and energy-importing countries will be among the hardest hit if the conflict persists.
Rising inflation, coupled with slower growth, creates a difficult policy environment for governments, forcing them to balance between protecting households and maintaining fiscal discipline.
The Fund has advised against broad fuel subsidies, urging instead targeted and temporary support measures to shield the most vulnerable without worsening public debt.
For Zimbabwe, the developments underline the country’s exposure to external shocks and the importance of strengthening domestic resilience, particularly in energy, agriculture and fiscal management.
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