IMF warns prolonged Middle East conflict risks global stability

International Monetary Fund Managing Director Kristalina Georgieva has cautioned that the escalating conflict in the Middle East could undermine global economic stability if it becomes prolonged, flagging risks to energy markets, inflation trends and investor sentiment. Addressing delegates at the Asia in 2050 Conference in Bangkok this morning, Georgieva said an extended war would likely transmit shocks across economies by lifting energy prices and clouding growth prospects. At a time when many countries are still navigating fragile recoveries and tight financial conditions, she warned, policymakers could face renewed strain. “If this conflict proves more protracted, it has clear potential to…