All roads point into higher inflation and slower growth, says IMF's Kristalina Georgieva

• IMF expects to downgrade global growth projections, moving from a previously anticipated 0.1% upgrade to a downgrade due to the conflict.
• The Iran war is a negative supply shock, pushing prices up and leading to higher inflation and slower growth globally.
• The crisis's impact is asymmetric; countries in the zone of hostilities, oil importers, and those with weak reserves (e.g., Philippines, Thailand, Sri Lanka, Bangladesh, Egypt, Jordan) are most vulnerable.
• The IMF projects a near-term demand for an additional $20B-$50B in financing to support affected countries.

IMF Managing Director Kristalina Georgieva states that the global economy is heading towards higher inflation and slower growth due to the Iran war, which acts as a negative supply shock. The impact is asymmetric, hitting oil importers and countries with weak reserves the hardest. The IMF anticipates a near-term demand for $20B-$50B in additional financing to support vulnerable nations.