IMF prepares support for oil shock fallout. The International Monetary Fund stands ready to assist countries facing balance of payment pressures amid West Asian tensions. IMF Managing Director Kristalina Georgieva warns that a 10 percent increase in energy prices sustained over one year would raise inflation by 40 basis points and slow growth by up to 0.2 percent. About 50 countries already rely on IMF programs, with demand expected to rise as foreign aid declines. Low-income nations and heavily indebted countries face particular vulnerability. Georgieva emphasized that central banks must prepare for dual impacts: consumer price inflation and weakened currencies that increase foreign debt servicing costs. She urged policymakers to build fiscal capacity, strengthen institutions, and diversify energy supplies to withstand economic shocks.
