AFP published this article:

The war between Israel and Hamas has darkened the horizon for a world economy that was already experiencing weak growth, IMF chief Kristalina Georgieva said on Thursday.

Speaking at the IMF-World Bank annual meetings in Marrakesh, Morocco, Georgieva said the International Monetary Fund was “very closely monitoring how the situation evolves” and how it is affecting oil markets.

Georgieva noted that the IMF’s World Economic Outlook, which was released earlier this week but drafted before the conflict broke out, already showed weak global growth.

“We are experiencing severe shocks that are now becoming the new normal for a world that is weakened by weak growth and economic fragmentation,” she said at a news conference.

She said it was “too early” to assess the impact of the conflict between Israel and Palestinian group Hamas.

But, Georgieva added, “very clearly, this is a new cloud on not the sunniest horizon for the world economy -- new cloud, darkening this horizon.”

The IMF has kept its growth forecast a 3.0 percent for this year but lowered it to 2.9 percent for 2024, warning that the economy is “limping along, not sprinting.”

IMF chief economist Pierre-Olivier Gourinchas said on Tuesday that IMF research shows that a 10 percent increase in oil prices could weigh down on global growth by 0.15 percentage points and increase inflation by 0.4 percentage points.

The International Energy Agency said on Thursday the risk of oil supply disruptions due to the war is limited but that it stands ready to intervene in markets if necessary.