War between Israel and Hamas is a dark shadow for the global economy: IMF chief

A war between Israel and Hamas can cause great harm to developing countries. First the shortage of food grains and now this war may increase the prices of oil in the international market. Amidst all this, International Monetary Fund (IMF) Managing Director Kristalina Georgieva said on Thursday that the ongoing war between Israel and Hamas has darkened the horizon of the world economy, which is already going through a period of weak growth. Georgieva said the IMF is “following the situation very closely” to see how it is affecting oil markets.

There may be fluctuations in oil prices

“Clearly this is a dark cloud over the world economy, and it certainly was not needed,” he told a news conference at the annual meetings of the IMF and the World Bank in Morocco. He said there has been some volatility in oil prices and reactions in the markets, but it is too early to predict the economic impact.

Know the estimated global growth

“We are facing serious shocks, which is now normal for a world weakened by weak growth and economic fragmentation,” he told a news conference. The IMF has projected global growth for this year at 3 percent, but has reduced it to 2.9 percent for 2024. An attack by Palestinian militant group Hamas on Israel from Gaza has killed hundreds of people and sent oil markets into turmoil. Fears arose that it would spill over into a geopolitical conflict involving the US and Iran that could disrupt oil shipments to the Middle East.

What did Blinken say on Israel-Hamas war?

Here, the IMF chief spoke about the negative impact of the Israel-Hamas conflict on the global economy. On the other hand, US Secretary of State Antony Blinken has reached Israel. He held a joint press conference with the PM of Israel.

US Secretary of State Antony Blinken has said that ‘the message I bring to Israel is this – you can be strong enough to defend yourself, but as long as America exists, you should never do that. Will have to. We will always be with you…’ US Secretary of State Blinken said that ‘We are shocked by the wickedness of Hamas. We are also inspired by the bravery of Israeli citizens. We are encouraged by the remarkable solidarity of the Israeli people.