IMF's Georgieva says war in Middle East will lead to higher inflation and slower global growth; barring war, IMF had expected small upgrade to growth projections for 3.3% in 2026, instead all roads now lead to higher prices and slower growth

Georgieva's comments reflect heightened concerns about the impact of geopolitical instability on global economic conditions. The expectation of rising inflation coupled with slower growth suggests a challenging environment for both policymakers and investors, as the potential for economic upgrades has been overshadowed by the implications of conflict. This outlook may shift market sentiment, particularly in fixed income where inflation expectations are crucial.