The head of the International Monetary Fund (IMF) has expressed confidence in the development of the global economy. There are risks due to wars and the geopolitical situation, said Kristalina Georgieva on Sunday at the World Governments Summit in Dubai. But the global economy has proven to be surprisingly robust. However, the Gaza war could have broader implications. “This extraordinary uncertainty is compounding challenges for economies still recovering from previous shocks. Further expansion of the conflict would worsen the economic damage,” she said.
Only recently did the IMF lower its growth forecast for the Middle East and North Africa region to 2.9 percent. That is 0.5 percentage points less than assumed in October. The financial organization emphasized that the outlook for the region is extremely uncertain, with many risks dominating. This includes an expansion of the conflict in the Gaza Strip to countries neighboring Israel. Further trade disruptions caused by violence in the Red Sea could have serious consequences, including on tourism.