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Originally published by Capital Businessbusiness
May 5, 2026
5h ago
IMF chief warns of “much worse outcome” for global economy as Mideast war drags on

Under the adverse scenario, global growth would slow to 2.5 percent in 2026, while inflation would rise to 5.4 percent. Kenya breaking news | Kenya news today |..
✨ Key Highlights
International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that the global economy faces a "much worse outcome" if the Middle East war continues, citing potential impacts on inflation and growth.
- A prolonged conflict reaching 2027 with oil prices at $125 per barrel could lead to a "much worse outcome" for the global economy.
- The warning comes from Kristalina Georgieva, Managing Director of the IMF.
- The IMF has already activated an "adverse scenario" with current conditions including sustained oil prices above $100 per barrel and rising inflation, projecting global growth of 2.5% and inflation of 5.4% for 2026.
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