IMF Chief Says Saudi Attacks Could Have Negative Spillover 'Everywhere'
Kristalina Georgieva said the attacks could raise energy costs and worsen debt pressures as the IMF sees spillovers for everyone, everywhere.
- On Wednesday, IMF Managing Director Kristalina Georgieva warned that recent attacks on Saudi Arabia could impact people "everywhere," as conflict in the energy-rich region adds to wide-ranging economic concerns.
- A violent battle between a Saudi-led coalition and Yemen's Houthis has erupted, with missile strikes on energy facilities; Houthi strikes on Riyadh's international airport at the weekend left 13 people dead and crude prices soared after Iran shut the Strait of Hormuz.
- On Tuesday, the IMF raised its 2026 global growth forecast to 3.1 percent, though debt servicing costs have increased to 14% of government revenues today from around 6% a decade ago, prompting Georgieva to urge governments to "strengthen their fundamentals so they can withstand shocks."
- Georgieva called on governments to "make urgent repairs to the fiscal house before the cracks widen," admitting "there is no magic" to tackling bond yields and emphasizing that countries must tighten debt.
- Warning of excessive global economic imbalances, Georgieva stated, "To put it very simply, China needs to spend more, the US has to save more and Europe has to invest more," targeting low-income and vulnerable economies facing acute debt servicing challenges.
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11 Articles
IMF Director General Cristalina Gorgeeva warned today, on Wednesday, of possible negative repercussions of Al-Houthi's attacks on Saudi Arabia on the global economy, amid concerns about the impact of rising tensions in the region on energy markets and oil supplies. France Press reported on Gorgeeva during a press conference on the margins of annual IMF and World Bank meetings [...]
Radio France Internationale
IMF chief says Saudi attacks could have negative spillover 'everywhere'
A violent battle between a Saudi-led coalition and Yemen's Houthis has erupted in recent days, with missile strikes on airports and energy facilities across the kingdom. The latest round of fighting was triggered by Houthi strikes on Riyadh's international airport at the weekend that left 13 people dead and operations suspended in the worst attack since 2015. The escalation compounds fears about the impact of the Middle East crisis on global gro…
New explosions were heard in Riyadh, Saudi Arabia's capital city, which had been targeted for several days by the Houthists. The IMF leader said she feared that the strikes would have an impact on the world economy. Follow the news of the conflict in the Middle East on Wednesday, 14 October.
Attacks on Saudi Arabia's infrastructure could have negative consequences globally
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