MARRAKECH: The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, expressed concern on Thursday that the Israel-Hamas war is further dimming the prospects of an already fragile world economy grappling with weak growth.
Georgieva stated that the IMF is closely monitoring the evolving situation, particularly its impact on oil markets. She remarked, “This conflict adds another layer of uncertainty to an already precarious global economic outlook, and it is an unwelcome development.” She made these comments during a news conference held at the annual meetings of the IMF and World Bank in Marrakech, Morocco.
While there have been fluctuations in oil prices and market reactions, it is still too early to determine the full economic implications. Georgieva acknowledged, “We are currently facing significant disruptions that are becoming increasingly common in a world characterized by weak growth and economic fragmentation.”
The IMF has maintained its global growth forecast at 3 percent for this year but has slightly lowered it to 2.9 percent for 2024.
There are concerns that Israel and Palestine conflict could escalate into a broader geopolitical confrontation, potentially disrupting oil shipments in the Middle East.
