By Micah Jonah, April 10, 2026
The International Monetary Fund has warned of a potential rise in global inflation following the ongoing conflict involving the United States, Israel and Iran.
Managing Director Kristalina Georgieva said the institution will downgrade its global growth forecast in its upcoming report, citing the economic impact of the war.
Georgieva stated that prior to the escalation, the global economy had shown resilience, with earlier projections placing growth at 3.3 percent and expectations of further improvement. However, the conflict, which began in late February, has altered that outlook.
The war has led to increased prices of oil and natural gas, alongside damage to refineries, tanker terminals and other energy infrastructure. It has also disrupted fertilizer shipments, affecting supply chains linked to global agricultural production.
According to the IMF, economic output in countries directly affected by conflict typically declines at the onset and continues to fall over time, with cumulative losses recorded over several years.
Georgieva also said the IMF is seeking approval for a quota review that would expand its lending capacity, making more resources available to member countries.
Central banks in several regions have taken note of rising inflation risks linked to the conflict. Monetary authorities are expected to assess economic conditions as part of upcoming policy decisions, including interest rate reviews in major economies.
The developments come as global markets respond to ongoing geopolitical tensions and shifts in energy supply conditions.
