
Global economic growth under stress
IMF’s July WEO estimates global growth at 3% for 2026, but warns the Middle East conflict could restart, boosting energy volatility and supply-chain strains—impacting countries unevenly.

The writer holds PhD in Economics degree from the University of Barcelona, and previously worked at International Monetary Fund.Prior to this, he did MSc. in Economics from the University of York (United Kingdom), and worked at the Ministry of Economic Affairs & Statistics (Pakistan), among other places. He is author of Springer published book (2016) ‘The economic impact of International Monetary Fund programmes: institutional quality, macroeconomic stabilization and economic growth’.He tweets @omerjaved7

IMF’s July WEO estimates global growth at 3% for 2026, but warns the Middle East conflict could restart, boosting energy volatility and supply-chain strains—impacting countries unevenly.

Pakistan’s Economic Survey 2025-26 faces criticism for treating climate change as a late chapter, omitting climate finance and El Niño risks, and offering a weak resilience analysis.

UNCTAD data show developing countries’ external debt hit record levels, while rising interest payments and austerity weaken growth and exports—leaving many with worsening debt distress amid the Middle East conflict.

A Project Syndicate discussion revisits the “Adam Smith problem,” arguing Smith’s moral psychology shaped markets. It warns that neoclassical misreadings and policy choices helped fuel inequality and weakened political voice.

Marking 250 years since The Wealth of Nations, the piece argues that key Smith ideas—like the invisible hand and division of labor—are often misread, and calls for a more balanced approach to specialization and worker freedom.

With peace talks stalled, the Strait of Hormuz faces near closure, pushing oil and gas prices up. Fertilizer shortages follow, raising food prices and threatening production worldwide.

IMF Spring Meetings signal a worsened global economic outlook as the Middle East conflict continues. The IMF’s World Economic Outlook uses reference, adverse, and severe scenarios to project slower growth and higher inflation.

A 2025 air quality report shows PM2.5 levels worsening globally, with Pakistan among the most affected. The article argues austerity and conflict limit investment in clean-air solutions.

The ongoing Iran War has caused oil prices to surge nearly 60%, reaching close to $120 per barrel, significantly impacting the global economy and inflation rates.

The ongoing conflict in Iran has triggered significant economic shocks, particularly in oil and gas prices. This article discusses the implications for global markets and the need for balanced policy responses to mitigate inflation and supply issues.

Sadly, this spirit of activism, and collaboration is not present in any significant way in Pakistan, where the neoclassical, and related neoliberal, and austerity-based models continue to dominate the teaching, and practice of economics.

This article examines the complex relationship between neoliberalism and industrial policy, highlighting the historical context and implications for global economies.