The ongoing conflict in the Middle East is driving up global inflation and slowing economic growth, according to Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF).
She made these remarks ahead of the IMF’s upcoming World Economic Outlook, which is scheduled to be released next week.
Georgieva also highlighted that Iran’s blockade of the Strait of Hormuz—a crucial route through which approximately one-fifth of the world’s oil and gas supplies pass—has resulted in the most severe disruption to global energy supplies ever recorded.
The IMF is set to release its World Economic Outlook on April 14, providing a comprehensive range of global economic forecasts.
Experts had previously warned that the combined effects of the ongoing conflict and tightening financial conditions could weaken global economic growth.
Georgieva further noted that, in the absence of the war, global economic growth was projected to reach 3.3% in 2026 and 3.2% in 2027, as economies continued to recover from the pandemic.
