International Monetary Fund (IMF) Managing Director Kristalina Georgieva, in an interview with Reuters, warned that the Middle East conflict is set to negatively impact global economic growth and drive up inflation. She stated that the conflict has already caused the largest historical disruption in energy supplies, with the Strait of Hormuz—through which about 20% of global oil and gas shipments pass—effectively blocked, reducing global oil supplies by 13%.

Georgieva emphasized that even if the conflict is resolved quickly, the IMF plans to revise its forecasts: lowering expectations for global economic growth and raising inflation projections. According to her estimates, without the war, global growth could have been 3.3% in 2026 and 3.2% in 2027, but now "all roads lead to higher prices and slower economic growth."

The consequences of the conflict are most acutely felt by poor countries lacking sufficient resources to support their populations, increasing the risk of socio-political instability. The IMF chief assessed this situation as a serious threat to the global economic system, as rising energy prices and supply issues weaken economic activity worldwide.

Source: kun.uz