Economic Buzz: IMF says global economy continues to show resilience in the face of more frequent and overlapping shocks

International Monetary Fund or IMF stated in its latest Annual Report that the global economy continues to show resilience in the face of more frequent and overlapping shocks. This year, it was war in the Middle East restraining growth, boosting inflation, and disrupting the supply of key commodities. If not for an agile private sector boosted by AI investment and disciplined policymaking, things could have been much worse. But uncertainty remains high and the medium-term outlook tepid. IMF noted that price and financial stability are paramount though sound policy frameworks and strong institutions are helping them offer resilience. The fund highlighted the fiscal challenge and stated that fiscal authorities still have tools they can use. Structural policies are also a crucial avenue to build more durable growth, flexibility, and resilience

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