Global Growth at Risk From Iranian situation, Warns IMF

More barriers to global growth. The International Monetary Fund (IMF) has warned of the potential downward impact that the U.S. attack on Iran could have on global growth prospects, which the institution plans to update in July.

In an interview with BloombergTV, IMF Managing Director Kristalina Georgieva acknowledged that recent events represent "another source of uncertainty" in a highly uncertain environment.

Thus, the institution remains attentive to the evolution of events both for their potential impact on oil and gas prices, but also with respect to possible disruptions that may affect supply routes and other countries.

"There could be a secondary and tertiary impact," the Bulgarian economist warned of the risk of further turbulence affecting the growth prospects of major economies, producing a triggering impact of a downward revision of global growth prospects.

"As you know, we have already revised downward the growth projections for this year and we will publish our next projections in July," the IMF head reminded.

The IMF has confirmed its previous forecasts, in which global growth has not stopped, but has slowed down

In this regard, Georgieva has assured that "so far, what we observe in the first two quarters of the year generally confirms the picture we painted in April: slightly slower global growth, but no recession".

In the case of the United States, the IMF head believes there is a greater likelihood that it will avoid recession this year, while the process of disinflation continues, but not to a point where the Federal Reserve could be comfortable cutting interest rates right now.

"What we expect towards the end of the year is for the Fed to possibly apply its judgment, considering that the time may have come to adjust interest rates downward," he has ventured.