Countries particularly hit the hardest by the war in the Middle East are those that are heavily dependent on energy imports and have limited policy space, according to the International Monetary Fund.
"More than three months into the war in the Middle East, the global economy appears to be holding up," IMF Managing Director Kristalina Georgieva said in a blog post published Monday. "But an overall resilient global picture masks significant disparities. Even among advanced economies, some countries and communities have been harder hit. And in Africa, the negative impacts are more conspicuous. Meanwhile, with the prolonged closure of the Strait of Hormuz and infrastructure in the Middle East damaged by the fighting, uncertainty and risks remain high."
Georgieva noted that Europe, which heavily relies on imported oil and gas, is facing higher inflation due to increased energy prices. France, Italy and Germany are among the euro area countries that have logged an increase in inflation since the war began in February.