IMF Warns on Prolonged Middle East War, Higher Rates for Longer
- Economic activity could be impacted in neighboring countries
- Georgieva says interest rates have risen too high, too quickly
An excavator clears rubble as people search for survivors and bodies of victims through buildings following a strike in Khan Yunis in Gaza,on Oct. 25.
Photographer: Mahmud Hams/AFP/Getty Images
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The International Monetary Fund warned that a prolonged war between Hamas and Israel risks impacting economic activity and the inflation outlook in neighboring countries such as Egypt, Lebanon and Jordan.
“What is happening in the Middle East is happening at a time when growth is slow, interest rates are high, the cost of servicing debt that has gone up because of Covid and the war,” Kristalina Georgieva, the fund’s managing director said on the second day of the Future Investment Initiative in Riyadh on Wednesday.