IMF Chief: Middle East conflict will lead to a slowdown in global economic growth

IMF Managing Director Kristalina Georgieva said on the 6th that the fighting in the Middle East will push inflation higher and slow global economic growth. The IMF will publish its latest global economic forecasts next week. In an interview with Reuters on the 6th, Georgieva said that even if the Middle East military conflict is resolved quickly, the IMF will cut its economic growth projections and raise its inflation projections. If the fighting drags on, its impact on inflation and growth will be greater. She said that if there were no war, as economies continue to recover from the pandemic, the IMF would originally have made a modest upward adjustment to its growth forecasts for global economic growth over the current and next two years. Now, all paths point to higher prices and slower growth. Georgieva said that poor and vulnerable countries lacking energy reserves will be hit the hardest by the current Middle East conflict, and some countries have already begun seeking help. She warned that today’s world faces high uncertainty stemming from geopolitical tensions, technological advances, climate shocks, and demographic changes. The IMF and the World Bank will hold their 2026 spring meetings in Washington, D.C., in the United States from the 13th to the 18th, and it is expected that the IMF will release a new World Economic Outlook on the 14th. (Xinhua News Agency)