Washington, April 14 (SANA) – The International Monetary Fund (IMF) warned Tuesday that the war in the Middle East has upended economic forecasts, slowing growth and pushing inflation higher amid disruptions to energy supplies and global trade.
In its latest World Economic Outlook report, the IMF said the closure of the Strait of Hormuz and damage to energy infrastructure in the region have revived fears of a global energy crisis.
The fund expects economic growth in the Middle East and North Africa region to slow sharply this year, lowering its forecast for real GDP growth to 1.1 percent, down by 2.8 percentage points from its January estimate.
Rising inflation pressures
The IMF noted that rising energy prices and supply chain disruptions have created a strong supply shock, weakening purchasing power and increasing the risk of sustained inflation.
Globally, growth has slowed to around 3.1 percent, while more pessimistic scenarios suggest it could fall to 2 percent if the conflict turns into a prolonged crisis.
Uneven impact across countries
The report said energy-importing countries will be the hardest hit, particularly low-income economies with limited financial resources.
The IMF called for targeted and temporary support for vulnerable households, alongside tighter monetary policies by central banks to maintain price stability.
Earlier Tuesday, the International Energy Agency also warned that the ongoing war could deepen the global energy crisis due to rising oil costs and declining supply.
Kh.A
