Pakistan and the International Monetary Fund have reached a staff-level agreement for the release of $1.2 billion from the bailout package approved last year

The growth of financing activity outside of the traditional banking sector is adding an extra source of risk to the financial system, the IMF said, after finding many large lenders had increasingly high exposure to hedge funds and other non-bank institutions, which are more lightly regulated.

International Monetary Fund Chief Economist Pierre-Olivier Gourinchas discusses escalating trade tensions and the outlook for inflation.

The International Monetary Fund said that recent trade deals have avoided the worst of Trump's threatened tariffs, but warned that a renewed U.S.-China trade war could slow output significantly.

The UK is set to be the second-fastest-growing of the world's most advanced economies this year, according to new projections from the International Monetary Fund (IMF). But the IMF also predicts the UK will face the highest rate of inflation among G7 nations both this year and next, driven by rising energy and utility bills.

The IMF projected the U.S. economy will grow 2% in 2025 and 2.1% in 2026, a drop from 2.8% in 2024, while inflation was revised upward. A shrinking U.S. labor market, partly due to a 1.1 million decline in foreign-born workers since January, indicates a negative supply shock could kick in and lower potential output, according to the outlook.

Global markets are getting too comfortable with risks like trade wars, geopolitical tensions and yawning government deficits, which, combined with already overpriced assets, increase the chance of a "disorderly" market correction,

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Bank of England should not lower interest rates before price pressure shows signs of easing, says chief economist

The IMF now expects world output to rise 3.2% in 2025, up 0.2 percentage point from its July outlook and 0.4 pp from its April report. That still represents a slightly slower rate of growth than the 3.3% increase in output for 2024. The projection for 2026 of 3.1% was unchanged from the July view.

WASHINGTON (Reuters) -The Israel-Hamas peace deal that halts two years of armed conflict in Gaza presents an opportunity for a lasting economic recovery in the region, the International Monetary Fund's deputy chief economist said on Tuesday.

Wall Street closed mixed on Tuesday and gold touched a record high as investors weighed upbeat economic sentiment from the International Monetary Fund and Federal Reserve Chair Jerome Powell against revived U.