By Andrea Shalal
The International Monetary Fund (IMF) expects short-term financial assistance requests to the institution to address the repercussions of the war in the Middle East to range from $20 to $50 billion (€17.13 to €42.82 billion), said the managing director, Kristalina Georgieva, on Thursday.
The IMF chief emphasized that the conflict in Iran is putting a strain on the global economy, particularly by causing energy prices to soar and disrupting supply chains.
In a speech prepared ahead of the IMF and World Bank meetings scheduled for next week, Kristalina Georgieva stated that the war will force the IMF to revise downward its global growth forecasts.
The IMF will present several scenarios in its upcoming report on the outlook for the global economy, which is set to be published next Tuesday.
There is no doubt that the Middle East will be in the spotlight as, after five weeks of conflict, concerns about inflation and worries about growth remain high.
U.S. President Donald Trump announced a two-week ceasefire with Iran from Tuesday night to Wednesday, but the agreement is already showing signs of cracks that cast doubt on progress towards lasting peace.
“At best, there will be no clear and simple return to the previous situation,” Kristalina Georgieva said.
“What we know is that growth will be slower, even if the new peace is sustainable,” she added.
Even in the most optimistic scenario, she signaled, there will be a downward revision of growth forecasts due to damage to infrastructure, disruptions in supply, loss of confidence, and other negative effects.
In its latest update on global economic prospects from January, the IMF projected global growth of 3.3% in 2026 and 3.2% in 2027.
Kristalina Georgieva also mentioned that the IMF has sufficient resources and can enhance its support through existing programs, urging other countries to seek assistance.
However, she did not mention any specific countries.
According to a study by Boston University, between May 2024 and March 2025, the IMF approved over $36 billion in new loans. (Reporting by Andrea Shalal; French version by Diana Mandia, edited by Benoit Van Overstraeten)
