World Economy

IMF Warns UK on Spending as Global Economy Shows Signs of Strain

The International Monetary Fund warned UK Chancellor John Healey to deploy cost-of-living assistance with restraint, citing inflation risks. Central banks worldwide are grappling with persistent price pressures as global growth is expected to accelerate next year. Yet the IMF flagged that the world economy is approaching the limits of its resilience amid ongoing energy constraints and mounting financial vulnerabilities. Energy-driven inflation continues to feed through to consumer prices, particularly in fuel costs, keeping headline inflation elevated across markets. Japan's producer price growth has moderated but remains high, suggesting input-cost pressures may be stabilizing. Singapore's central bank signaled additional monetary tightening ahead to contain inflation risks stemming from energy and investment spending. These divergent policy signals underscore central banks' challenge in balancing growth support against sustained price risks.