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2026-04-07 07:32:05
[IMF Managing Director: Middle East War Will Drag Down Global Economic Growth and Push Up Inflation] (1) International Monetary Fund (IMF) Managing Director Kristalina Georgieva stated that the Middle East war has reduced global oil supply by 13%, which will exacerbate inflation and slow global economic growth. Even if the conflict ends quickly, the IMF will still lower its economic growth forecast and raise its inflation forecast. (2) Without the war, the IMF originally expected to slightly raise its global growth forecast as economies continued to recover from the pandemic. But now all trends point to rising prices and slower growth. The IMF plans to release its World Economic Outlook report on April 14. (3) Poor and vulnerable countries are the hardest hit, lacking fiscal space to cope with rising prices and increasing the risk of social unrest. Energy exporters such as Qatar are also affected by damage to their production facilities (Qatar needs three to five years to restore 17% of its natural gas production). Georgieva urged countries to avoid widespread energy subsidies that could exacerbate inflation.
