The global economy is projected to grow just 2.6% this year, down from last year’s 3.1%, as the IMF cites stubborn inflation and higher interest rates as key drag factors. While a full-blown recession remains unlikely, risks loom large — from Ukraine’s war to financial instability in vulnerable nations. Slower growth means continued pressure on consumers and businesses, with prices and borrowing costs still high. Emerging markets may outpace advanced economies, but both face headwinds. Policymakers are urged to tame inflation without stifling growth — a delicate tightrope walk in turbulent waters.
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