IMF Warns US–Iran Conflict Could Slow Global Economic Growth

Kathmandu — IMF Managing Director Kristalina Georgieva has called for greater international coordination to ease mounting pressure on the global economy stemming from the ongoing conflict in the Middle East.

Speaking at the opening session of the 2026 Spring Meetings in New York, she cautioned that unilateral economic decisions, such as export restrictions and price controls, risk further destabilizing the global economy. Such measures, she noted, can disrupt supply chains and heighten market uncertainty.

Georgieva urged financial institutions to roll out targeted, temporary support programs for vulnerable populations, emphasizing that these measures should remain aligned with medium-term economic strategies.

She also called on central banks to stay alert and be prepared to act if inflation shows signs of slipping out of control, including through interest rate adjustments. Timely monetary policy, she said, is critical to breaking the cycle of rising prices. She stressed that any economic support measures should be strictly temporary and implemented with clear timelines.

In addition, Georgieva highlighted the need for financial regulators to build more agile and responsive systems. Ensuring financial stability, she said, will require a careful balance of both microeconomic and macroeconomic policies, alongside the efficient use of limited resources.

Reaffirming the IMF’s commitment to supporting its member countries, she added that preliminary estimates suggest short-term balance-of-payments financing needs linked to the Middle East conflict could range from $20 billion to $50 billion.