The IMF Director predicts that the global economic situation will deteriorate in April

April will be more challenging for the global economy than March due to critical fuel supply issues caused by the conflict. 

This was stated by International Monetary Fund Managing Director Kristalina Georgieva, according to The Guardian. 

The IMF chief explained that oil reserves delivered by tankers from February shipments are running out, and new supplies are blocked or suspended due to the war in Iran. Georgieva emphasized the threat of a physical breakdown in supply chains, as resuming tanker traffic will take a significant amount of time even after peace agreements are reached. To mitigate the effects of the fuel crisis, the IMF recommends that Western countries implement energy-saving measures, including free public transportation and remote work. 

According to the IMF chief, the experience of the coronavirus pandemic in promoting work-from-home arrangements and reducing energy-intensive activities will help countries adapt to resource shortages. Georgieva also noted that the impact of events in the Middle East will be felt for a long time due to the nature of maritime transport and the significant distances between exporters and consumers.

Pierre-Olivier Gourinchas, Chief Economist of the International Monetary Fund (IMF), stated that an immediate end to the conflict with Iran could lead to an annual oil shortage comparable to the shocks of the 1970s. This is of paramount importance, as war directly affects global resource supplies and the world’s economic stability.

We also reported that a Ukrainian delegation arrived in the U.S. for the IMF and World Bank meetings