IMF warns: War in the Middle East risks global economy

2026-04-07 16:21:00, Aktualitet CNA

The Managing Director of the International Monetary Fund, Kristalina Georgieva, has raised the alarm about the impact of the war in the Middle East on the global economy, warning of slower growth and higher inflation.

According to her, the escalation of the conflict and the blockade of the Strait of Hormuz have caused the largest energy supply disruption in history, pushing crude oil prices to high levels in international markets. Global oil supply has shrunk by about 13%, which is putting severe pressure on economies.

Georgieva stressed that, in the absence of the conflict, the IMF would have raised its forecasts for global economic growth.

"If we didn't have this war, we would see an increase in our forecasts. Instead, all roads now lead to higher prices and slower growth. Global oil supply has shrunk by 13%," said Kristalina Georgieva, managing director of the IMF.

She added that the crisis is hitting asymmetrically, hitting poor countries hardest, which do not have sufficient energy reserves or fiscal space to protect citizens.

Also, damage to gas infrastructure in regions like Qatar is expected to have long-term consequences.

The warnings come on the eve of the publication of the IMF's "World Economic Outlook" report on April 14, where a revision of the reduction in global growth from the current level of 3.3% is expected, as a result of the impacts of the war./ CNA