The International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that the economic fallout from the ongoing war with Iran would take at least three to four months to ease, even if fighting stopped immediately.
Speaking at a recent economic forum, Georgieva said the conflict has already disrupted global supply chains, pushed up energy prices and heightened inflation risks, adding that recovery would not be immediate due to lingering market uncertainty.
Her remarks come as the IMF revises its global outlook, with officials warning that prolonged instability in the Middle East could significantly slow growth and increase inflationary pressures worldwide.
Georgieva cautioned that the longer the conflict persists, the greater the economic damage, particularly for oil-importing and developing economies that are more exposed to price shocks.
She urged policymakers to avoid measures that could worsen demand pressures, stressing that targeted support for vulnerable economies would be more effective than broad subsidies.
The IMF chief added that while global markets have shown resilience, uncertainty remains high, and full stabilisation will take time even after a ceasefire is reached.
