IMF Warns of Rising Debt Costs, Energy Shocks, and Global Imbalances Despite Firming Global Growth Outlook

The International Monetary Fund (IMF) has reported that the global growth outlook for 2026 has firmed at around 3%, as the world economy has absorbed the energy supply shock better than anticipated. However, the IMF cautioned that significant risks persist, including rising debt costs, a persistent energy shock, stalled disinflation, and widening global imbalances. The IMF emphasized the need for central banks to maintain their focus on price stability and for fiscal authorities to develop credible medium-term consolidation plans, as global public debt approaches 100% of GDP.