The war in the Middle East will lead to higher inflation and slower global growth, the head of the International Monetary Fund told Reuters on Monday, ahead of a fresh forecast for the world economy planned by the global lender for next week.
The war has triggered the worst-ever disruption in global energy supply in history, with millions of barrels of oil production shuttered due to Iran's effective blockage of the Strait of Hormuz, crucial for shipping one-fifth of the world's oil and gas. Even if the conflict is swiftly resolved, the IMF is set to reduce its forecasts for economic growth and bump up its outlook for inflation, Kristalina Georgieva, managing director of the IMF, said.
