Original article by Lea Jurkovic
The Australian Financial Review – Page: 4 : 15-Apr-26

The International Monetary Fund’s latest World Economic Outlook report has warned that the Iran war could potentially trigger a recession. The IMF’s worst-case scenario is for global economic growth to fall by 1.3 percentage points in 2026, to just two per cent; this would the global economy on the brink of a recession. The IMF has also urged governments worldwide to curb spending and avoid targeted cost-of-living relief, arguing that such measures could boost inflation and make it harder for central banks to bring it under control. The Reserve Bank of Australia’s deputy governor Andrew Hauser says it will continue to increase official interest rates if it deems the risk of high inflation to be more important than the impact on economic growth.

CORPORATES
INTERNATIONAL MONETARY FUND, RESERVE BANK OF AUSTRALIA