The IMF Director, Kristalina Georgieva, warns that the war in Iran will cause increased inflation and a global economic slowdown.

The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, stated that higher inflation and weaker economic growth are inevitable as a result of the war in Iran. In an interview, Georgieva emphasized that all signs point to higher prices and a slowdown in global economic growth, while the IMF is preparing to revise its forecasts downwards.

Before the conflict, the IMF anticipated a slight improvement in global growth, but the attacks on Iran have caused waves of shock in the global economy, severely affecting energy supply. The global oil supply has decreased by 13%, and the poorest countries will be the most affected.

Georgieva mentioned that global uncertainty is high, citing geopolitical tensions and climate change. The war in Iran will dominate discussions at the World Bank and IMF spring meetings, where stagflation is expected to be a central topic. Mark Zandi, chief economist at Moody's Analytics, confirmed that inflation and weak economic growth are the result of current policies.