The International Monetary Fund has announced that it is observing the ongoing Israel-Hamas conflict to gauge its potential ramifications on the world economy.
Managing Director of the IMF, Kristalina Georgieva, conveyed this during a press briefing held on Thursday as part of the IMF and World Bank Group’s annual meetings taking place in Marrakech, Morocco.
While acknowledging the ongoing “ups and downs” in oil prices, Georgieva highlighted the uncertainty surrounding the exact economic impact of the conflict, emphasizing that it is still too early to draw definitive conclusions.
She characterized the situation as “a new cloud darkening this horizon” for the global economy.
Georgieva stated, “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. We have seen some reaction on 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.”
The IMF’s Managing Director also expressed her profound concern over the loss of innocent lives during the conflict, referring to the tragic consequences of the attacks, with civilians paying the ultimate price for the destructive war.
Georgieva emphasized the gravity of the situation and the reciprocal nature of the attacks.
As the situation in the Middle East continues to unfold, the IMF’s watchful monitoring reflects the complex and interconnected nature of the global economy, where geopolitical events can have far-reaching economic consequences.
