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.
Continue Reading
Read the complete article from Capital Business
Part of the Day's Coverage
IMF chief warns of much worse outcome for global economy as Mideast war drags on - May 2026
International Monetary Fund 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 coalition of Kenyan lobby groups including Oxfam Kenya and Transparency International Kenya has petitioned Parliament to compel the government to release the IMF Governance and Corruption Diagnostic Report on Kenya. Separately, regulators and investors are warning that Africa's betting and gaming sector could be hampered by inconsistent tax policies, potentially deterring investment and reducing tax revenues.
