IMF chief Kristalina Georgieva cautioned on Thursday that the latest conflict in the Middle East is testing global economic resilience once again. Speaking at the “Asia in 2050” conference in Bangkok, she said prolonged fighting could drive up energy prices, unsettle markets, and weigh on growth and inflation, creating new challenges for policymakers worldwide.
Georgieva noted that the United States and Israel launched strikes against Iran last weekend, triggering retaliatory attacks across the Gulf. The violence in the resource-rich region has already pushed oil prices higher and rattled financial markets.
“We are in a world of more frequent, more unexpected shocks,” she said. “Uncertainty is now the new normal, and we may be entering a prolonged period of flux.”
She stressed that energy security remains at risk for much of Asia, pointing out that markets have swung sharply in recent days. “The sooner we see the end of calamity, the better for the whole world,” Georgieva added.
