Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that inflation is already beginning to rise.
Moreover, she cautioned that the global economy could face "far worse outcomes" if the war in the Middle East extends into 2027 and oil prices reach approximately $125 per barrel.
Georgieva also stated that the continuation of the war means the IMF's previous scenario—which assumed a slight slowdown in global growth and a modest rise in prices—is no longer realistic.
Speaking at a conference hosted by the Milken Institute, she added that the IMF's "adverse scenario" is already taking effect.
She further explained that while long-term inflation expectations remain stable and financial conditions are not currently trending toward further tightening, this could change if the conflict persists.
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