The International Monetary Fund warns of the escalation of conflict in the Middle East and its impact on the global economy

International Monetary Fund (IMF) Managing Director Kristalina Georgieva has warned that the widening conflict in the Middle East could exacerbate an economic damage at the global level.

Georgieva stressed that the conflict is affecting tourism in countries in the region, adding that the fund is closely monitoring the financial impacts.

The IMF Director noted that the impact of the conflict in the Middle East at the global level is reflected in rising shipping costs and reduced traffic through the Red Sea.

In a speech at the Arab Financial Forum, Georgieva added that the International Monetary Fund will publish a document showing that the phasing out of energy subsidies could save $336 billion in the Middle East, equivalent to the economies of Iraq and Libya combined.