The IMF notes a decline in energy and commodity prices following a ceasefire in the Strait of Hormuz, though full normalization will take time. While inflationary expectations remain anchored, the Fund is particularly concerned about developing nations, especially in Africa, that are net energy importers. India's domestic demand is robust, with real GDP growth projected at 6.5% for the 2026-2027 fiscal year.

Energy experts estimate output to rebound within weeks, but it may take months to rebuild shipping confidence and repair damaged energy assets.

The IMF notes a decline in energy and commodity prices following a ceasefire in the Strait of Hormuz, though full normalization will take time. While inflationary expectations…