Cushioning the Middle East War Shock

Source: International Monetary Fund – IMF (video statements)

A resilient global economy is being tested again by the war in the Middle East. The shock is large, global, and asymmetric: energy flows have been disrupted, prices have risen sharply, and supply chains are under strain, with the heaviest burden falling on vulnerable, energy-importing countries.

Policy choices now will shape the outcome. Rejecting go-it-alone actions, keeping fiscal support targeted and temporary, preventing inflation expectations from breaking anchor, and rebuilding fiscal space will be critical to weathering this shock and strengthening resilience.

Watch IMF Managing Director Kristalina Georgieva’s 2026 Spring Meetings Curtain Raiser speech. https://www.imf.org/en/news/articles/2026/04/09/sp040926-spring-meetings-2026-curtain-raiser

https://www.youtube.com/watch?v=nT8iifRgJGE