The US and China have shown economic resilience more than three months into the war in the Middle East, the International Monetary Fund said Monday.
The conflict has pushed up commodity prices, inflation and financial-market volatility, though "not yet in ways that signal a global slowdown," the IMF said in an article on its website.
Strong investment in AI and data centers has been a key driver of US economic momentum, while China has cushioned the energy-price shock with its deep oil reserves, the IMF said.
Countries most exposed to higher energy costs and with limited room for policy responses are being hit hardest, the IMF said, noting strains in parts of Africa.
Even after the ceasefire announcement, uncertainty remains high, and policymakers need to stay agile in maintaining price stability, the IMF said. Some central banks have already tightened monetary policy to "keep inflation expectations anchored," the article said.