IMF Says Global Economy Still Strong Amid Six-Month US-Iran War
MacroGeopoliticsCommodity
The International Monetary Fund, or IMF, reported that the global economy remains resilient even as it faces a six-month-long war between the United States and Iran, though uncertainty over the global economic outlook remains high. IMF spokesperson Julie Kozack said on Thursday, September 10, that the global economy has been able to handle the fallout from the Middle East war, particularly the impact from energy prices, better than many had feared. Kozack said the global economy is facing pressure from two directions: negative supply-side effects from higher energy and commodity prices, and positive demand-side support from the technology cycle driven by artificial intelligence, or AI, which is affecting each country very differently. The IMF spokesperson also warned of several key risks, including energy pressures that could drag on, rising public debt, and a stalling disinflation process. For the IMF and World Bank annual meetings, scheduled to be held in Bangkok from October 12 to 18 this year, IMF Managing Director Kristalina Georgieva said in late August that resilience and dynamism will be key themes of the gathering.
