Washington, May 5 (SANA) International Monetary Fund Managing Director Kristalina Georgieva warned on Monday that prolonged conflict in the Middle East could have significantly worse consequences for the global economy, as rising energy costs fuel inflation and cloud growth prospects.
Speaking at a press conference, Georgieva said the continuation of hostilities had already undermined the IMF’s earlier forecasts, which had anticipated only a modest slowdown in global growth and limited price pressures.
“Continued war means those projections are no longer realistic,” she said, noting that inflation has begun to climb alongside oil prices, which have reached about $125 a barrel.
Georgieva said longer-term inflation expectations remain broadly stable and financial conditions have not yet tightened further, but cautioned that this could shift quickly if the conflict persists.
She warned that the global economy is facing increasingly adverse scenarios, with instability in the region pushing up energy costs and intensifying inflationary pressures.
Tensions have escalated despite a fragile truce between Washington and I in place since April 8. The situation worsened after U.S. President Donald Trump announced the launch of “Project Freedom” operation to reopen shipping lanes in the Strait of Hormuz.
The move comes amid a significant military buildup and warnings from Iran, while diplomatic efforts have stalled, adding to uncertainty in global energy markets.
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