According to the IMF, the shock has added uncertainty to global trade and transportation networks.
IMF Flags 50 Billion Dollar Funding Demand Surge as Global Economy Faces Energy Pressure
The International Monetary Fund expects global demand for its financial assistance to rise significantly, ranging between 20 billion to 50 billion, following economic disruptions linked to conflict in the Middle East, IMF Managing Director Kristalina Georgieva said.
She said the ongoing situation has affected global energy supplies, with reductions in the flow of oil and liquefied natural gas contributing to higher energy prices and wider supply chain pressures. The IMF has also revised its global growth outlook downward due to these developments.
Georgieva noted that the conflict has created uneven effects across economies, with oil-importing countries facing higher costs and supply constraints, while oil-exporting nations are also experiencing economic pressures due to market disruptions.
According to the IMF, the shock has added uncertainty to global trade and transportation networks, with disruptions affecting shipping routes, industrial inputs and regional economic activity.
The Fund also highlighted that inflation expectations in the short term are rising due to higher energy costs, although longer-term expectations remain stable. Financial conditions have tightened in several markets, though some easing has recently been observed.
The IMF is preparing updated global economic projections for its upcoming World Economic Outlook report, which will include different scenarios based on the duration and intensity of the ongoing disruptions. The institution has indicated that even under more optimistic assumptions, global growth is expected to be weaker than earlier forecasts.
The IMF currently has active lending programs worth about 140 billion, with total commitments including outstanding credit and planned lending reaching 245 billion, according to official data.
