Amman, Sept. 10 (Petra) -- The International Monetary Fund (IMF) stated on Thursday that the global economy has weathered the energy shock resulting from the war in the Middle East better than anticipated.

Global economic output is still projected to grow by approximately 3.0% in 2026, though elevated risks persist, CNN reported, citing the fund.

IMF spokesperson Julie Kozack noted that oil and gas prices remain high, emphasizing that the war-induced energy shock has not yet concluded.

Speaking to reporters, Kozack said global debt pressures are intensifying, while the disinflation process linked to the cost-of-living crisis that began in 2022 has plateaued.

During the IMF's regular press briefing, Kozack indicated that global inflation forecasts have risen, though long-term inflation expectations remain well-anchored.

The fund raised its 2026 global inflation forecast to 4.7%, up 0.3 percentage points from its previous projection, after energy prices settled roughly 25% above pre-war levels.

The IMF's baseline projections assume a gradual reopening of the Strait of Hormuz, with maritime traffic expected to return to normal levels by March 2027.

//Petra// AF