Global Economy Holds Up, but Growth Remains Vulnerable to Energy and Financial Shocks

Latest Market Alert | 24 June 2026

Executive Summary

The IMF has said the global economy is holding up better than feared, with no clear global slowdown yet visible. However, the World Bank has cut its 2026 global growth forecast to 2.5%, warning that growth could fall much further if energy disruption spreads into financial markets.

The OECD has also warned that a prolonged disruption scenario could materially weaken global growth and raise inflation, particularly for energy-importing economies and developing markets.

Sources: IMF; World Bank; OECD; Reuters

Why It Matters

The global economy is not collapsing, but it is less resilient than in previous cycles. Growth, inflation, energy costs and financial conditions remain closely linked.

UK Commercial Impact

UK firms should prepare for uneven demand, continued borrowing-cost sensitivity and cautious customer behaviour across export and investment markets.

Global Commercial Impact

Businesses operating internationally may face regional divergence, with India and parts of Asia remaining relatively resilient while Europe, the Middle East and more vulnerable emerging markets face greater pressure.

Our View

This is a resilience economy, not a recovery economy. Clients should assume slower growth, selective opportunities and higher sensitivity to geopolitical or financing shocks.

Risk Indicator

LOW ░░░░░░░░ HIGH
       ▲ Moderate / Elevated

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