IMF says monitoring Middle East unrest, too early to assess impact

The IMF says it is closely monitoring rapidly unfolding geopolitical developments in the Middle East

The International Monetary Fund (IMF) said on Tuesday it is closely monitoring rapidly unfolding geopolitical developments in the Middle East, noting early signs of disruptions to trade flows and regional economic activity, and adding that it is too early to assess the economic impact on the region or globally.

In a statement, the IMF said current tensions have already begun to reverberate across global markets, citing a sharp rise in energy prices and increased volatility in financial markets, which pose new challenges to the global economy, according to Reuters.

The Fund stressed that the scale of the anticipated economic damage will depend primarily on two key factors: the extent of the conflict’s expansion and its duration before stability is restored.