DID Press: International Monetary Fund (IMF) has warned that ongoing war and tensions in the Middle East could significantly slow global economic growth and expose the world economy to serious risks.
According to the IMF’s latest assessment, escalating conflicts in the region—one of the world’s key energy production and export hubs—are driving instability in global markets, particularly oil and gas.
This instability could push energy prices higher, raise production costs, and ultimately reduce economic growth across multiple countries.
The IMF also stressed that the crisis is disrupting global supply chains and could complicate recovery efforts following recent economic downturns. Developing nations are expected to be hit hardest, facing increased prices and reduced investment.
The report notes that geopolitical instability in the Middle East is eroding investor confidence and may trigger capital outflows from emerging markets. Rising inflation, especially in energy-importing countries, is another likely consequence.
The IMF urged countries worldwide to adopt cautious economic policies and strengthen international cooperation to mitigate the crisis and preserve global economic stability.