IMF says Middle East conflict may increase balance of payments pressure, ready to assist affected countries

Golden Ten Data, March 6 – The International Monetary Fund (IMF) has stated that, given the increased uncertainty caused by the Middle East conflict, the organization is prepared to provide assistance to countries facing balance of payments pressures. IMF Managing Director Kristalina Georgieva said she expects demand for IMF programs to rise. She pointed out that currently about 50 countries rely on the IMF to meet their balance of payments needs. Georgieva said, “We already have some member countries experiencing significant balance of payments pressures that are in contact with us. We are ready to take action.” She expressed concern about some Pacific island nations, which are the most vulnerable when global oil supplies are disrupted. Low-income and highly indebted countries may also come under pressure. According to her, if energy prices rise by 10% and remain elevated for a year, it would lead to inflation increasing by about 40 basis points and economic growth slowing by up to 0.2 percentage points.