IMF: Global economy copes with energy shock better than expected

The International Monetary Fund (IMF) has found that the global economy has coped with the energy shock caused by the Iran conflict better than initially assumed. IMF Managing Director Kristalina Georgieva shared this assessment on Tuesday ahead of the G20 Finance Ministers' meeting taking place in North Carolina, USA.

Despite the positive evaluation, Georgieva emphasized that the fiscal situation in some countries is concerning. This could jeopardize economic stability, particularly in times of rising energy prices, which have been observed since the onset of the conflict.

The increasing costs of oil and gas pose a significant challenge for numerous states. Georgieva pointed to a "tug-of-war" where the negative effects of the energy crisis must be weighed against the resilience of the global economy.

While some countries are managing to adapt, a critical situation regarding public finances remains alarming. The IMF highlights the importance of taking appropriate measures to prevent further deterioration of the fiscal situation.

Overall, the IMF's analysis shows that the global economy can better handle the conditions created by the energy crisis than initially expected. Nevertheless, concerns remain about potential future developments, particularly a possible rise in prices and the associated inflation.