War in the Middle East has swollen the list of geopolitical risks for global finance chiefs already confronting fallout from conflict in Ukraine and bracing for a year of pivotal elections.
IMF Managing Director Kristalina Georgieva told reporters: “In terms of economic impact, we are very closely monitoring how the situation evolves, how it is affecting especially oil markets.” “If that were to be the case, of course the supply of oil from the Gulf gets disrupted and you get a spike in oil prices,” he said. “The economic impact would be huge.”
Political risks But the effects of another protracted conflict, beyond the one raging in Ukraine, is far less quantifiable and adds to a long list of political touch points on their horizon next year. ADVERTISEMENT CONTINUE READING BELOW The US election is perhaps the most significant of those, with the possibility that Donald Trump might return to office with a renewed assault on the prevailing global economic order.
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