IMF President: Remains 'Highly Vigilant' About Impact of Middle East War on Global Economy

On June 16, IMF President Kristalina Georgieva stated that three months after the outbreak of the Middle East war, the global economy remains stable with no signs of slowdown. She continues to maintain a 'high level of vigilance' regarding the impact of the Middle East war on the global economy and warned that even though the U.S. and Iran have announced an agreement to restart operations in the Strait of Hormuz, it will still take time for energy supplies to recover. The shocks to the global economy from energy shortages over the past few months have been somewhat buffered by technological advancements, particularly in investments in artificial intelligence and data centers. 'The U.S. is benefiting from this global technology cycle, as are some Asian economies with rapid growth in exports of certain tech products. However, most countries have not yet truly felt the driving effects of technological advancements on productivity and economic growth, raising concerns about further divergence in the global economy.'