US EditionMiddle East War Means 'All Roads' Lead to Higher Prices
The IMF says even a swift end to the conflict will still push growth lower and inflation higher, with energy-importing countries hit hardest.
- Managing Director Kristalina Georgieva said the International Monetary Fund will lower growth forecasts and increase inflation outlooks due to the war, stating, "Instead, all roads now lead to higher prices and slower growth."
- The war has shrunk global oil supply by 13 per cent after Iran effectively closed the Strait of Hormuz, a crucial shipping lane for one-fifth of the world's oil and gas.
- Brent crude settled near $110 on Monday, as the International Energy Agency reported 72 energy facilities damaged; Qatar expects restoring 17% of natural gas production will take three to five years.
- Poor nations face the hardest hit, as the International Monetary Fund, World Bank, and International Energy Agency coordinate to assess economic effects; Georgieva is engaging the United Nations Food and Agriculture Organization on food security.
- The war will dominate discussions at next week's spring meetings in Washington; The Fund will release its World Economic Outlook on April 14, noting that even if hostilities stop, lingering negative impacts remain.
33 Articles
33 Articles
The IMF expects the conflict to dominate next week's spring meetings with the World Bank in Washington.
The war in the Middle East will lead to greater inflation and slowing global growth, warned Kristalina Georgieva, managing director of the International Monetary Fund (IMF), before the publication of the new economic forecasts that the institution expects for next week.
Middle East war means 'all roads' lead to higher prices
The war in the Middle East will lead to higher inflation and slower global growth, the head of the International Monetary Fund has told Reuters, ahead of a forecast for the world economy planned by the global lender for next week.
(Seoul = Yonhap News) Reporter Hwang Jung-woo = International Monetary Fund (IMF) Managing Director Kristalina Georgieva said that due to the war in Iran, "now all roads lead to higher prices and lower..."
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