The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has advised countries facing economic pressures to act swiftly in seeking financial support when necessary, warning that delays could worsen economic conditions.
Georgieva spoke during a press conference at the ongoing 2026 Spring Meetings of the World Bank/IMF in Washington DC, where she addressed global economic challenges and the impact of the ongoing crisis in the Middle East.
Speaking during a question-and-answer session, she urged countries to adopt measures that would reduce energy consumption, noting that some nations had already begun implementing such policies.
“I have seen some countries doing exactly that, putting in place incentives like making transportation free or allowing people to work from home. If we did it during COVID, I don’t see any reason why we can’t do it now,” she said.
Georgieva observed that many of the countries most affected by the Middle East crisis are located in Sub-Saharan Africa, adding that the IMF is working to identify those in urgent need of assistance. “We are very determined to use this week to identify which of the countries must get our support,” she stated.
She emphasised the importance of strong fiscal and economic policies, urging governments to build buffers during periods of economic stability to better withstand future shocks. According to her, prudent economic management in good times remains critical for resilience during downturns.
The IMF chief also disclosed that during a meeting with central bank governors and finance ministers from Africa held the previous day, officials did not request immediate financial assistance but instead sought policy guidance.
“But, of course, there could be a need for financial support. And my advice is that when you need help financially, don’t hesitate to move fast, because the sooner we act, the more we protect the economy,” she said.
Earlier in her address, Georgieva highlighted the broader global implications of the Middle East conflict, noting that it has already inflicted significant economic damage. “We have been watching developments in the Middle East. A war that causes significant pain to people and economies in the region and around the world. The impact on the global economy is already large,” she said.
She explained that supply chain disruptions and damage to infrastructure are driving up prices and slowing global economic growth. According to her, global growth is projected to decline from 3.4 per cent last year to 2.1 per cent in 2026. She warned that if the conflict persists and oil prices remain elevated for a prolonged period, global economic conditions could deteriorate further.
“But if the conflict persists, and oil prices stay high for an extended period, we must brace for tough times ahead,” she added.
On the IMF’s global outlook, Georgieva cautioned that in a worst-case scenario, global growth could fall to two per cent, stressing that the impact would be widespread. She noted that countries that depend on energy imports are particularly vulnerable, many of which are low-income or fragile economies.
“In the most adverse case, growth could fall to two per cent, and the shock is global,” she said, adding that the highest negative impact is being felt by energy-importing nations.
Georgieva stressed that maintaining financial stability remains a key priority in the short term, noting that the economic shock from the Middle East crisis has reached dangerously high levels.
On the role of the IMF, she reaffirmed the institution’s commitment to supporting member countries through the current challenges. “We anticipate financial demand for IMF support to range between $20bn and $50bn, which represents augmentation of some existing problems and prospective demands from new problems from at least a dozen countries, a number of them in Sub-Saharan Africa,” she said.
The PUNCH