IMF Chief Warns of Global Economic Slowdown Amid Mideast Conflict, AI Advances

IMF Managing Director Kristalina Georgieva warned that escalating conflict in the Middle East and advancements in artificial intelligence (AI) technology could slow global economic growth. Georgieva presented this outlook and spoke of the negative impacts at the IMF-World Bank Spring Meetings held on April 9 (local time) in Washington D.C.

Georgieva highlighted the slowdown in global economic growth resulting from the aftermath of the Middle East war. She stated, "Even if new peace deals hold, global growth will be lower." The IMF chief characterized the surge in oil prices due to the Middle East war as a "massive supply shock." She explained that since the start of the conflict on February 28, crude oil supply has decreased by about 13% and liquefied natural gas (LNG) supply by approximately 20%. This situation has led to higher energy costs, supply chain disruptions, and inflationary pressures.

Georgieva also mentioned that the IMF's demand for financial assistance is expected to increase, estimating the need to be between $20 billion and $50 billion.