IMF Warns Saudi Attacks Could Spread Economic Pressure Worldwide

Attacks on Saudi Arabia could have economic consequences far beyond the Middle East, International Monetary Fund managing director Kristalina Georgieva warned on Wednesday at the IMF and World Bank annual meetings in Bangkok, according to Free Malaysia Today and Malaysian broadcaster RTM.

Both outlets reported that fighting between a Saudi-led coalition and Yemen’s Houthis had intensified in recent days, with missile strikes targeting Saudi airports and energy facilities. They reported that an attack on Riyadh’s international airport over the weekend killed 13 people and suspended operations. “The Saudi economy is important for the region and the world,” Georgieva said, according to Free Malaysia Today. She warned that the developments had “potentially negative spillovers for everybody, everywhere.”

“In that sense, these developments have potentially negative spillovers for everybody, everywhere”Kristalina Georgieva, IMF managing director

The warning comes amid higher crude prices following what the two outlets described as Iran’s effective closure of the Strait of Hormuz after US and Israeli attacks in February.

“But this resilience is reaching its limits.”Kristalina Georgieva, IMF managing director

Georgieva’s comments came a day after the IMF raised its forecast for 2026 global growth by 0.1 percentage points to 3.1%, according to Free Malaysia Today and RTM. The meetings are also addressing energy costs and questions about whether the surge in artificial-intelligence investment can be sustained, the outlets reported. Free Malaysia Today said the IMF cautioned that lower-income countries were not sharing equally in AI-related economic activity while facing higher energy costs.

In contrast, Thai media coverage, including reports from Prachachat and Khaosod English, highlighted that the IMF projected Thailand's economy would grow by only 2.1% in 2026, making it one of the slowest-growing economies in Southeast Asia. This projection was framed as a warning for Thailand, which is grappling with tight credit and weak consumer spending. Thai outlets noted that while the IMF raised its global growth forecast, the Thai economy is at risk of lagging behind its neighbors due to structural issues and external pressures.

Thai coverage emphasized the need for economic reforms to enhance competitiveness, with Khaosod English stating that Thailand's growth rate is only ahead of Myanmar and Brunei. This perspective contrasts with Indonesian reporting, which focused on the broader implications of the Saudi attacks on global markets rather than specific national growth rates.

Moreover, Nikkei Asia reported that experts at the meetings underscored Southeast Asia's vulnerability to energy shocks, advocating for regional cooperation in connecting power grids to mitigate impacts from high oil prices affecting businesses and households across the region. This regional context was less emphasized in the Indonesian coverage, which centered more on the global ramifications of the Saudi situation.

Additionally, during the meetings, the IMF introduced the “Bangkok Blueprint for Fraud-Resilient Financial Services,” a collaborative effort with the Bank of Thailand aimed at combating digital fraud. This initiative, reported by Prachachat, outlines 12 principles to enhance international cooperation in preventing scams, reflecting Thailand's proactive stance on financial security amid global economic uncertainties.

Georgieva urged governments to repair their public finances, Free Malaysia Today reported, citing a rise in debt-servicing costs from about 6% of government revenue a decade ago to 14% today. The global economy remained resilient despite repeated shocks, she said, “But this resilience is reaching its limits.”