The head of the International Monetary Fund, Kristalina Georgieva, has stated at an event that the risk of a global recession triggered by a Middle Eastern oil shock has not been eliminated, even though the impact of a conflict would be relatively limited if navigation through the Strait of Hormuz were to resume quickly.

Georgieva noted that the IMF is closely monitoring inflationary trends, as rising prices can influence interest rate levels and intensify pressure on public finances.

The IMF chief pointed out that with global multilateral agreements facing obstacles, small, open economies should seek to establish trade deals among themselves. "I am a strong advocate for exploring opportunities for regional and cross-regional trade cooperation," Georgieva stated.

She commented, "Reaching and implementing a global agreement is very difficult." Georgieva believes that the current trend toward trade protectionism is likely to persist for an extended period.