IMF chief Georgieva says global economy withstands Middle East war shock

Managing Director Kristalina Georgieva of the International Monetary Fund said the global economy has so far weathered the shock from the Middle East war. She noted that commodity prices, inflation, inflation expectations and financial conditions have been affected, but the impact has not yet translated into a worldwide slowdown. Georgieva highlighted that the world’s two largest economies, the United States and China, are still showing strong momentum.

She warned that uncertainty and risks remain high, especially because of the prolonged closure of the Hormuz Strait and damage to regional infrastructure, which could prolong energy‑supply disruptions. The IMF will incorporate these developments in its World Economic Outlook update due on 8 July and urges policymakers to stay agile and disciplined. Member countries are seeking clear policy guidance, and the Fund is providing tailored advice, capacity‑building assistance and, where needed, financial support.