The International Monetary Fund (IMF) has announced plans to downgrade its global growth projections, citing escalating tensions between the United States and Iran that continue to disrupt economic activity and delay a return to pre-conflict price stability.
IMF Managing Director Kristalina Georgieva made the disclosure on Sunday ahead of the IMF and World Bank Spring Meetings, warning that the global economy is experiencing asymmetric shocks from the ongoing crisis.
Speaking on CBS’ Face the Nation, Georgieva said prices are unlikely to return quickly to pre-war levels, even if a ceasefire between the US and Iran is achieved.
“It will take some time, yes, and it will take more time for locations that are experiencing a higher degree of disruption,” she said, adding that the extent of the downgrade will depend on the duration of the conflict and the speed of recovery in global production.
She noted that the uneven nature of the shock means some economies will recover faster than others, deepening inflationary pressures in vulnerable regions and complicating policy decisions for central banks worldwide.
The warning comes as global policymakers prepare for the 2026 IMF and World Bank Spring Meetings in Washington, where rising energy prices, supply chain disruptions, and inflation risks are expected to dominate discussions.
The World Bank has also revised its outlook for Sub-Saharan Africa, cutting its 2026 growth forecast by 0.3 percentage points. In its latest Africa Economic Update report, formerly known as Africa’s Pulse, the institution attributed the downgrade to the economic fallout from the conflict and rising global fuel and fertilizer costs.
The report now projects that the region will grow by 4.1% in 2026, unchanged from 2025 but lower than the 4.4% forecast issued in October 2025. It also highlights the impact of heavy debt burdens and persistent inflationary pressures on fragile economies across the continent.
Analysts warn that prolonged instability in global energy markets could further strain emerging economies already struggling with high import costs and limited fiscal space, raising concerns about a slower and more uneven global recovery.
