Summary IMF warns Iran conflict may trigger global economic crisis, hitting oil-importing and low-income countries hardest, with rising inflation and pressure on fiscal policies expected.
NEW YORK (Dunya News) - The International Monetary Fund (IMF) has warned that the ongoing Iran conflict could trigger an economic crisis, urging countries to remain cautious about its global impact.
IMF Managing Director Kristalina Georgieva said in a statement that low-income countries and oil-importing nations are likely to be the most affected by the crisis, and governments must exercise caution in their fiscal policies.
She added that negative supply shocks could put additional pressure on economies, potentially leading to rising inflation.
Georgieva further stated that central banks must closely monitor inflation risks, while governments should use limited resources wisely to reduce economic strain and maintain stability.
