IMF Lowers Global Growth Forecast Amid Energy Risks

Financial analyst Omar Ayub stated that the energy crisis is driving markets toward increased caution. Gold prices remain high amid the ongoing closure of the Strait of Hormuz. The analyst noted that while gold demand is driven by rising prices, the pace of growth may be slower due to central bank interest rate decisions expected this week. There is currently no clear timeline for when the crisis might resolve. The energy crisis in the European Union is showing trends of further intensification. The International Monetary Fund reduced its global growth forecast for this year from 3.4 percent to 3.1 percent. Growth could fall to 2 percent if crude oil and natural gas flows are disrupted through next year. Inflation could rise to 6 percent under these conditions, according to the report. The situation is described as a potential time bomb for the global economy.