Global economy

World Bank warns of growing geopolitical commodity shocks, beyond oil crisis

Increasing geopolitical risk, despite the market resilience displayed so far, is weakening the global order

The view of many economists today is that if a crisis is going to strike, it is likely to be triggered in the US.

Imbalances are back on the global agenda

Policymakers must overcome the mercantilist fallacy that the way to get rich is by running surpluses forever

“Now, if this continues into 2027 and we have oil prices of US$125 more or less, then we have to expect a much worse outcome,” IMF managing director Kristalina Georgieva says.

IMF chief Georgieva warns of ‘much worse outcome’ if Middle East war drags into 2027

The adverse scenario forecast global growth slowing to 2.5% in 2026 and headline inflation of 5.4%

Asean is now viewed by the survey’s respondents as the most credible platform for upholding the rules-based order.
NEW GLOBAL ORDER

Asean’s test in a fragmented global economy

South-east Asia’s resilience will depend on greater economic integration within the region and continued strategic engagement with external partners

Stock markets don't seem too concerned by the impact of the Iran war. This could backfire, says the writer.

Are stock markets in denial about the true cost of Iran war?

Macro risks suggest that the markets are too sanguine and may be mispricing the impact of the war

US President Donald Trump (left) with Chinese President Xi Jinping in Busan in October 2025. The most plausible outcome of US-China rivalry is not a clean transition from one hegemon to another, but a fragmented order.
NEW GLOBAL ORDER

US-China rivalry and the Kindleberger Trap: Why inaction – not escalation – is the biggest risk

In periods of transition, the greatest threat may not be the clash of powers but the absence of leadership

Saudi Arabian Finance Minister Mohammed Al-Jadaan summed up the mood of many officials when he said he would not be comfortable predicting an improved outlook until tankers start moving freely through the strait again.

IMF, World Bank meetings show limits in mitigating shocks, reliance on US for solutions

Participants swing from gloom over a worsening global outlook to tentative optimism

Views from the Victoria Peak tourist hotspot on Hong Kong Island in October 2025.  Inflation risks tied to the global energy shock will dominate Asia’s economic calendar in the coming week. 

Iran war revives stagflation dangers for global economy

For all the gloom, multiple policymakers remain cautious about how to respond

Banque de France Governor Francois Villeroy de Galhau and French Minister for Economy, Finance, and Industrial, Energy and Digital Sovereignty Roland Lescure speaks to the media at the IMF/World Bank 2026 Spring Meetings in Washington, D.C., April 16, 2026.

G7 finance chiefs say it is urgent to limit Middle East war’s cost to global economy

[WASHINGTON] Finance chiefs of the Group of Seven nations on Thursday said it was urgent to limit the cost to the global economy of an enduring Middle East war and “reaffirmed the pressing need to mov...

Former US Treasury Secretary Janet Yellen said the Middle East conflict had intensified ongoing economic uncertainty.

Former US Treasury Secretary Yellen says Iran war to bring more inflationary pressure

Policymakers had signalled an expectation for one interest-rate cut in 2026, unchanged from their December forecasts