By Andrea Shalal
The International Monetary Fund (IMF) expects short-term financial aid requests to address the repercussions of the Middle East war to reach between $20 and $50 billion (€17.13 to €42.82 billion), said its managing director, Kristalina Georgieva, on Thursday.
The IMF chief emphasized that the conflict in Iran was severely testing the global economy, particularly by driving up energy prices and disrupting supply chains.
In a speech ahead of next week’s IMF and World Bank meetings, Kristalina Georgieva stated that the war will force the IMF to lower its global growth forecasts.
The IMF will present several scenarios in its next report on the global economic outlook, set to be published next Tuesday.
There is no doubt that the Middle East will be in the spotlight as, after five weeks of conflict, fears of inflation and concerns about growth remain high.
U.S. President Donald Trump announced a two-week ceasefire with Iran from Tuesday to Wednesday night, but the agreement is showing signs of cracks that cast doubt on progress towards lasting peace.
“At best, there will be no clear and simple return to the pre-existing situation,” stated Kristalina Georgieva.
“What we do know is that growth will be slower, even if the new peace is lasting,” she added.
Even the most optimistic scenario, she signaled, will involve revising down growth forecasts due to infrastructure damage, disruptions in supply, loss of confidence, and other negative effects.
In its latest update on the global economic outlook from January, the IMF projected global growth of 3.3% in 2026 and 3.2% in 2027.
Kristalina Georgieva also stated that the IMF has sufficient resources and can enhance its support through existing programs, with other countries expected to seek assistance.
However, she did not mention any specific countries.
According to a study by Boston University, between May 2024 and March 2025, the IMF approved over $36 billion in new loans.
