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The situation in the Red Sea has not yet affected the global economy - IMF

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The IMF Managing Director said that although the shelling in the Red Sea is forcing ships to look for alternative routes, which increases costs, the situation does not have a significant impact on global economic growth forecasts.

Despite the fact that due to the shelling of ships in the Red Sea, merchant ships are forced to look for other ways to supply, this situation does not currently affect the global economy. This was stated by IMF Managing Director Kristalina Georgieva in an interview with The Washington Post  , UNN reports.

Details

She acknowledged that due to the Houthis' military actions, merchant ships have to take a different route,  which leads to higher costs.

In particular, in January this year, compared to January last year, almost half as much traffic was recorded through the Suez Canal. At the same time, the IMF Managing Director emphasized that the consequences are not yet global.

At the moment, this (the situation in the Red Sea - ed.) has consequences, but not on a scale that would significantly disrupt the forecasts of global economic growth. The impact is more localized. It is most severe for a country that depends on revenues from the Suez Canal

- explained Georgieva

Німеччина відправила до Червоного моря фрегат "Гессен" для участі військовій місії ЄС 08.02.24, 14:05

Addendum

According to her, the greatest impact is being felt in Egypt, which relies on revenues from the Suez Canal and is now losing more than $100 million a month.

Of course, the situation in the Red Sea adds a bit of pressure to prices. But not to the point where I would say that global inflation forecasts will be revised upward

- summarized IMF Managing Director Kristalina Georgieva.

Recall

The EU High Representative for Foreign Affairs and Security Policy, Josep Borrell, said that the EU plans to launch a naval mission in the Red Sea in the next three weeks to help protect cargo ships from Houthi attacks in Yemen. 

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