NEW YORK, April 9 (Xinhua) -- The International Monetary Fund (IMF) Managing Director Kristalina Georgieva on Thursday called for coordinated actions to offset the Middle East War's impact on the world economy.
In a speech titled "Cushioning the Middle East War Shock," which marked the opening of the 2026 IMF Spring Meetings, Georgieva urged all countries to "reject go-it-alone actions, export controls, price controls, and so on" that can further disrupt global conditions.
She said that fiscal authorities should provide targeted and temporary support to the vulnerable, aligned with their medium-term fiscal frameworks.
The IMF chief also called on central banks to step in firmly with rate hikes if inflation expectations threaten to break anchor and ignite a costly price spiral, while stressing that fiscal support should remain targeted and temporary.
"We are working with countries to help them target their fiscal support and craft effective sunset clauses for temporary measures," she said, adding it is essential that financial regulators and supervisors be alert, nimble, and responsive to a fluid situation.
All countries must deploy their limited fiscal resources responsibly, and "micro- and macro-prudential policies must work to reduce such stability risks and ensure a resilient system," she said.
Georgieva promises support to members with financing through the fog of uncertainty, expecting near-term demand for IMF balance-of-payments support to rise to somewhere between 20 billion and 50 billion U.S. dollars, given the spillovers of the Middle East War. ■
