The global economy has remained resilient despite the Middle East conflict, supported by strong growth in the U.S. and China, though energy importers remain vulnerable, according to a Monday blog by IMF Managing Director Kristalina Georgieva.
Oil prices remain about 30% above pre-war levels, contributing to higher inflation in many economies.
However, inflation expectations have generally remained anchored, while financial markets have held up and global financial conditions remain accommodative, Georgieva said.
She said investment in artificial intelligence and data centers continues to support growth, particularly in the U.S. and parts of Asia, helping offset the impact of higher energy costs.
The IMF warned that countries heavily reliant on energy imports, especially in Africa and parts of Asia, face mounting pressure from higher fuel, food, and financing costs.
The fund said policymakers should maintain price stability and fiscal discipline while remaining prepared to respond to prolonged disruptions.
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