IMF warns of stagflationary shock ahead

THE announcement of a ceasefire in the Iran war on Tuesday (Apr 7) provided an immediate relief for global markets.

However, International Monetary Fund (IMF) managing director Kristalina Georgieva warned two days later that the conflict is triggering a systemic stagflationary shock to the world economy.

In her speech ahead of the IMF-World Bank Spring meetings, she was clear that “even in a best case, there will be no neat and clean return to the status quo” that was in place before the US and Israel military campaign against Iran began in late February.