·
·
Tuesday, 18 August 2026dailybeirut.com
Economy
IMF Managing Director Kristalina Georgieva warned Monday that the ongoing Middle East conflict will drive up global inflation and slow economic growth. Speaking to Reuters ahead of the IMF’s updated global forecasts due next week, Georgieva stated that without the war, the Fund would have raised its 2026 and 2027 growth projections from 3.3% and 3.2% respectively. Instead, “all roads now lead to higher prices and slower growth.” She noted that even a swift end to hostilities would still result in modest downward growth adjustments and higher inflation, while a prolonged conflict would amplify these effects. Georgieva also confirmed that the IMF has received financial assistance requests from several unnamed countries and may strengthen existing lending programs to meet their needs.
IMF Managing Director Kristalina Georgieva indicated on Monday that "the war in the Middle East will lead to higher inflation and slower global growth," ahead of the release of new global economic forecasts that the Fund is scheduled to issue next week.
In an interview with Reuters, Georgieva said: "Had it not been for the war, the Fund would have raised its global growth forecasts of 3.3% in 2026 and 3.2% in 2027."
She added: "If this war were not happening, we would have seen a slight upward revision to our growth forecasts. But instead, all roads now lead to higher prices and slower growth."
She noted that "even if fighting ended quickly and a relatively rapid recovery occurred, it would lead to a relatively modest downward adjustment in growth forecasts and an upward adjustment in inflation forecasts." She said that if the war continued for a prolonged period, its impact on inflation and growth would be greater.
Georgieva said: "The IMF has received requests for financial assistance from some countries," though she did not disclose their names.
She indicated that "the Fund can strengthen some existing lending programs to meet the needs of these countries."
