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International Monetary Fund Managing Director Kristalina Georgieva said the war in the Middle East will test global economic resilience and warned that \u201cnew shocks in different shapes and sizes\u201d will keep coming.<\/p>\n
Underscoring the IMF\u2019s concern at the suffering and loss of life resulting from the Middle East crisis, Georgieva warned that a prolonged conflict could affect energy prices, market sentiment, economic growth and inflation, \u201cplacing new demands on the shoulders of policymakers everywhere.\u201d<\/p>\n
\u201cWe are in a world of more frequent, more unexpected shocks,\u201d Georgieva said at the Asia in 2050 Conference in Bangkok. \u201cMost of the time, we cannot predict what exactly they will be. But all of the time, we can strive to be ready for them.\u201d<\/p>\n
Iran\u2019s retaliation to the US-Israel strikes has already disrupted travel and the flow of oil through the Strait of Hormuz, and Bloomberg Economics scenarios show that elevated energy prices could spur inflation and damage global growth. That\u2019s on top of tariff turmoil, which Georgieva last month warned could undercut an otherwise \u201cbuoyant\u201d US economy.<\/p>\n
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The IMF is closely monitoring the Middle East conflict, and will incorporate its findings in the World Economic Outlook that will be published in April, Georgieva said.<\/p>\n
As recently as January, the IMF revised its global growth projections slightly higher to 3.3% for 2026 and 3.2% for next year.<\/p>\n
The IMF chief had praise for Asia for rebuilding institutions, external buffers and investor credibility after the financial crisis in 1997-1998. But Georgieva cautioned that the region still needed to brace for a world of \u201crepetitive shocks\u201d that include disruptive technology, trade and geopolitics.<\/p>\n
She urged Asia to link up more internally to shield itself from trade uncertainties that will likely continue. The region can accelerate integration by lowering non-tariff barriers.<\/p>\n
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\u201cThere is no point lamenting on what is happening outside your remit,\u201d she said. \u201cFocus on what is in your hands, on what you can do to get your country, your economy in the best of shapes for this world we have entered.\u201d<\/p>\n
The Middle East war has already hit global markets, with some of the hardest-hit being tech-heavy indexes in South Korea and Taiwan, which have seen overseas investors offload billions of dollars of stocks.<\/p>\n
\u201cThe sooner we see the end of the calamity, the better for the whole world,\u201d Georgieva said.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\n