Escalating Middle East tensions pose new risks to world economy: Georgieva

2026-03-05 - 06:15

The Managing Director of the International Monetary Fund, Kristalina Georgieva, warned on Thursday that the escalating conflict in the Middle East is putting the resilience of the global economy to the test. Speaking during an event in Bangkok, Georgieva said the growing tensions in the region are creating new challenges for policymakers worldwide and increasing uncertainty in the global economic outlook, according to Xinhua. She noted that governments and financial authorities may be forced to deal with additional pressures as the conflict continues, stressing that the world could face a prolonged period of economic and geopolitical instability. Georgieva emphasized that the evolving situation in the Middle East highlights the fragility of the global economy and the need for coordinated policies to manage the potential economic fallout.