International Monetary Fund Managing Director Kristalina Georgieva confirmed that the economic repercussions of the recent US strikes on Iran could extend beyond the energy sector, pointing to heightened global uncertainty and their potential negative impact on economic growth.
According to Bloomberg, Georgieva indicated that the most significant immediate impact was higher energy prices, with Brent crude rising 5.7% to $81.40 a barrel during Asian trading before later retreating.
She added that the Fund is closely monitoring developments, warning that any further escalation could impact growth prospects in major economies, potentially leading to a further downgrade of global growth forecasts.
The IMF had already lowered its global economic growth forecasts last April, citing the impact of the US-led "reshaping" of global trade, which contributed to the slowdown in economic activity at the time.
Although the IMF has ruled out a global recession, rising global uncertainty could weaken growth momentum in the coming period.
Georgieva also addressed the direct impact of geopolitical tensions in the Middle East, focusing on the rising "risk premium" for oil and gas, stressing the potential for energy supply disruptions, which could increase economic burdens.
In another context, Georgieva expected the gradual decline in inflation rates in the US economy to continue, which could allow the Federal Reserve to cut interest rates before the end of the year. However, she warned of the risk of increased market volatility, noting the negative effects of uncertainty on investment and consumer confidence.