Washington-based fund says rising energy and food costs will hit economies worldwide and could leave lasting scars
The International Monetary Fund has warned that “all roads lead to higher prices and slower growth worldwide” should the conflict in the Middle East continue to throttle the amount of oil, gas and fertiliser making its way out of the Gulf.
In a stark message that countries on all continents will be affected, the Washington-based organisation said a rise in energy and food costs would harm economic growth this year and could leave lasting scars on the global economy.
Coming only hours after Donald Trump threatened to obliterate Iran’s energy infrastructure unless it agreed to a peace deal, the IMF’s analysis is likely to be viewed as a warning to the White House over the war’s lasting consequences for struggling households.
In a blogpost by the IMF’s main department heads, including the chief economist, Pierre-Olivier Gourinchas, the IMF said governments with high levels of borrowing will also have limited access to funds that could be used to cushion the worst effects of the crisis.
