The war in the Middle East will hit the global economy, said IMF head Kristalina Georgieva. Global oil supplies have already decreased by 13%. Even with a quick end to the conflict, the IMF will lower its economic growth forecast.
The war in the Middle East will lead to rising inflation and a slowdown in global economic growth. This was stated on Monday, April 6, by the head of the International Monetary Fund (IMF), Kristalina Georgieva, in an interview with Reuters ahead of a new forecast on the global economy that the fund plans to publish next week, writes DW.
Georgieva: The War Has Reduced Global Oil Supplies by 13%
According to the head of the IMF, the war in the Middle East has caused "the most severe disruption in history to global energy supplies" due to Iran's effective blockade of the Strait of Hormuz, through which about 20% of the world's oil and gas supplies pass. The ongoing conflict between Israel, the U.S., and Iran, which has lasted for more than a month, has already reduced global oil supplies by 13%, she added.
Even if this conflict is resolved quickly, the IMF intends to lower its economic growth forecast and raise its inflation forecast, Georgieva noted.
IMF Head: All Roads Lead to Rising Prices
Georgieva stated that if there were no wars in the Middle East, the IMF's forecast for global economic growth would be 3.3 percent in 2026 and 3.2 percent in 2027. Instead, all roads now lead to rising prices and an economic slowdown, she emphasized.
The head of the IMF also noted that the countries suffering the most from the war are the poor nations that lack energy reserves and budgetary capacity to assist their populations. This, in turn, increases the risk of socio-political upheaval, Georgieva believes.
