US Edition
IMF’s Georgieva warns Middle East conflict could push global inflation higher
IMF chief Kristalina Georgieva warned that a 10% rise in energy prices due to Middle East conflict could increase global inflation by 40 basis points and slow economic growth.
- On Monday, IMF Managing Director Kristalina Georgieva warned the Middle East conflict could push global inflation higher, citing a 10% oil price rise adding 40 basis points.
- Hostilities have threatened energy infrastructure, including choking the Strait of Hormuz and hitting facilities northwest of Tehran, while a British base in Cyprus was drone-attacked, disrupting shipping and trade routes.
- Investors shifted into the dollar and select assets as share markets plunged and the safe-haven dollar rose in Asia, while the TSX rose on Monday, March 2, and traders registered the shock on Tuesday.
- Global central banks face a difficult trade off between supporting growth and countering inflation, while hopes for U.S. Federal Reserve rate relief dim and emerging Asian central banks confront risky rate-cut choices as the Bank of Japan has less room to overlook price pressures.
- Higher shipping and insurance costs could lift non‑energy commodity prices, while reported external support from Russia to Iran may prolong hostilities and economic disruption.
40 Articles
40 Articles
The International Monetary Fund (IMF) has launched an alert about the economic risks of the war in the Middle East and warned that the world must prepare “for the unthinkable.” Kristalina Georgieva, director of the IMF, pointed out that the conflict in the Middle East could raise global inflation and stop economic development, so it called for resilience. Faced with war in the Middle East, IMF calls on nations to prepare “for the unthinkable” Fr…
The International Monetary Fund (IMF) has recommended that governments of countries prepare for...
Remember that every sustained 10% increase in oil prices weighs up to two tenths of global GDP
The managing director of the International Monetary Fund, Kristalina Georgieva, said that prolonged hostilities in the Middle East risk a serious blow to the world's markets and economies, creating unexpected challenges for which policymakers will have to prepare as a “new...
Kristalina Georgieva stressed that a prolonged war in the Middle East would affect markets, growth and inflation - She does not rule out new economic shocks even after the conflict ends
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