IMF chief says Middle East war will raise prices and slow global growth

The Middle East war will mean higher prices and slower global growth, according to IMF Managing Director Kristalina Georgieva.

In an interview reported by Reuters on April 6, Georgieva said the conflict would hurt the world economy and make the outlook worse than the IMF had previously expected. She said the Fund had been looking for a small upgrade to global growth before the war’s economic impact became clearer.

The IMF has already warned that the conflict can affect the global economy through energy, food and financial channels. In a March 30 blog, the Fund said the war can push prices higher and slow growth, while a March 19 briefing said prolonged higher energy prices would raise headline inflation and reduce output.

The IMF’s April 2026 World Economic Outlook preview still points to 3.3% global growth this year, but it also flags geopolitical escalation as a downside risk.

Georgieva’s comments reinforce that message. Energy remains the most immediate transmission channel, but the IMF has also pointed to broader spillovers if the conflict disrupts trade or tightens financial conditions.

The full World Economic Outlook is due later this month, when the Fund is expected to give a clearer view of how much the war has changed its forecast.