Industry Odisha Bureau, April 16: Analysing the ongoing West Asia crisis that has triggered utter disruptions in energy supply chain through the critical chokepoint Hormuz as well as shipping of other essential commodities, incumbent Managing Director (MD) of the International Monetary Fund (IMF) Kristalina Georgieva has reportedly predicted that the global economy is poised to slump down to 3.1 per cent in 2026.
The IMF MD has also reportedly warned that the continuation of such a grim scenario would lead to even tougher times ahead.
Briefing the press yesterday (April 15) soon after the IMF’s Spring Meetings, the IMF MD said, “Even if the conflict is short-lived, extensive infrastructure damage and supply-chain disruptions are pushing prices up and slowing global growth down from 3.4 per cent last year to 3.1 per cent in 2026”.
She simultaneously cautioned that the prolongation of Hormuz hurdle could further worsen the global economy’s scenario.
“In the most adverse case, growth could fall to 2 per cent, and the shock is global,” the IMF MD quipped.
Expressing that the shortages were already emerging and the repercussions would worsen in near future, the IMF MD elucidated, “The shortages are not only of oil and gas, but also of NAFTA, of helium”.
She further warned that the ill-effects of the Hormuz hurdle’s fuel supply-chain disruptions could also adversely affect the food prices because it is also closely connected with the supply chain of fertiliser.
As the inflation risks are also soaring, she concluded, “We have upgraded our projections for inflation for 2026.”
The IMF MD also stated, “Fiscal policy remains constrained. Global public debt is on track to breach 100 per cent of GDP in 2029”.
