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All Roads From the War Lead to Higher Prices and Slower Growth, IMF Says
- On Monday, The International Monetary Fund warned that the war in the Middle East is driving higher prices and slower economic growth worldwide, with all roads leading to increased costs.
- IMF economists wrote that the war's impact is "both global and highly uneven," with large energy importers across Asia and Europe facing the brunt of rising fuel costs due to the closure of the Strait of Hormuz.
- Countries like the UK and Italy remain exposed due to gas-fired power reliance, while France and Spain enjoy relative protection through nuclear and renewable sources; disrupted fertilizer shipments from the Gulf threaten global food supplies.
- The most vulnerable nations will "bear the heaviest burden" as food prices spike, the IMF said, while the organization provides financial assistance and policy advice to its around 190 member countries.
- Projections suggest the world may "settle somewhere in between—tensions linger, energy stays costly, and inflation proves hard to tame," depending on the war's duration and resulting damage to infrastructure and supply chains.
12 Articles
12 Articles
The International Monetary Fund has issued an economic alarm signal, stating that the war in the Middle East is leading to a rise in prices and a slowdown in global economic growth, CNN reports.
People in low-income countries are most at risk when food prices rise, IMF says
The war in the Middle East is overshadowing the prospects of many economies that were just beginning to show signs of sustained recovery after other crises in the past, the International Monetary Fund (IMF) warned. A few days after the update of its global economic prospects in the framework of its spring meetings each year together with the World Bank, it predicted that all scenarios lead to higher prices and slower growth. SEE MORE: Israel rej…
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