IMF Sees Inflation, Growth Risks If Israel-Hamas War Widens
- Broader conflict would threaten global economy via inflation
- Much depends on whether fighting draws in other countries
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The International Monetary Fund’s No. 2 official says that the war between Israel and Hamas could spur inflation and hamper global growth if it turns into a wider conflict that causes a significant increase in oil prices.
Modeling by the organization, whose mandate includes global economic surveillance, shows that a 10% increase in oil prices leads to inflation being 0.4 percentage points higher a year later, Gita Gopinath, the fund’s First Deputy Managing Director, said in an interview with Bloomberg TV’s Francine Lacqua.