The International Monetary Fund (IMF) is closely monitoring the repercussions of the ongoing Israel-Hamas conflict on the global economy.
“In terms of economic impact, we are very closely monitoring how the situation evolves, how it is affecting especially oil markets. It is too early to say. We have seen some ups and downs in oil prices,” stated Kristalina Georgieva, the Managing Director of the IMF, during a press briefing at the IMF and World Bank Group annual meetings in Marrakech, Morocco.
While recognizing the fluctuations in oil prices, Georgieva emphasized that it was too early to determine the precise economic impact of the conflict. She described the situation as “a new cloud darkening this horizon” for the global economy.
Georgieva stressed the significance of closely monitoring the evolving situation and its effects on various markets.
“As I said, we will be closely monitoring this. Very clearly, this is a new cloud on not the sunniest horizon for the world economy, a new cloud darkening this horizon that is not needed. Pray for peace,” she urged.
In addition to the economic concerns, Georgieva expressed her heartfelt sorrow over the loss of innocent lives in the conflict, highlighting that civilians often bear the brunt of such destructive wars. She also noted that the world has been grappling with severe shocks since 2020, which have now become part of the new normal, impacting a weakened global economy.
“These shocks have pushed global output down by $3.6 trillion as of this year,” Georgieva stated. She pointed out the uneven distribution of this loss, with the United States having largely recovered to pre-pandemic levels, while most of the rest of the world has not.
Regarding the conflict’s recent events, Hamas militants launched a surprise assault near the Gaza border, resulting in numerous casualties. Israel claimed that Hamas took more than 150 people hostage, including civilians and security forces.
The situation escalated with air and artillery strikes on the densely populated Gaza Strip, leading to significant loss of life, including many children, as reported by the Hamas media office in Gaza.
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