‘All roads lead to higher prices and slower growth,' warns IMF chief as Iran war hits global economy
By Joseph Wilkins
Published on April 7, 2026.
The head of the International Monetary Fund (IMF), Kristalina Georgieva, has warned that higher inflation and slower growth are inevitable for the global economy due to the Iran war. The IMF is preparing to cut its forecasts for global growth of 3.3% in 2026 and 3.2% in 2025. The conflict has caused significant disruption to energy supply, including the effective closure of the Strait of Hormuz, a vital shipping corridor, and severe damage to other critical supply chains. Georgieeva warned that the poorest countries lacking sufficient reserves will be the most affected by this, citing geopolitical tensions, technological advancements, climate shocks and demographic shifts as reasons for this uncertainty. The Iran war is expected to dominate discussions at the spring meetings of the World Bank and the IMF.
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