IMF Warns Houthi Attacks on Saudi Arabia Could Affect Everyone Worldwide

IMF Managing Director Kristalina Georgieva has warned that the impact of recent attacks by Yemen’s Houthis on Saudi Arabia could affect any person living anywhere in the world. The Houthis have attacked Saudi Arabia’s capital Riyadh, its airport, and energy centers in retaliation for the war being waged by the Saudi-led coalition to give the Yemeni government control over the country’s territories. Georgieva said Saudi Arabia’s economy is important to the entire region and to the world, and therefore the harmful impact of the attacks could affect every person living anywhere in the world. In February, following attacks by the United States and Israel on Iran, oil prices surged significantly because Iran closed the Strait of Hormuz. With that situation remaining unsettled, it is likely that the Houthis’ attacks will bring further changes to oil prices. According to a report released at the IMF’s annual meetings under way in Bangkok, the capital of Thailand, the projection for global economic growth this year was raised by 0.1 percentage point to 3.1%. However, due to the war, maintaining that growth has become difficult. Georgieva said this is the time to increase revenue, put expenditures in order, and strengthen the state’s financial management. "At this time, the biggest advice we can give to policymakers is to take swift reform measures before the country’s fiscal deficits widen," Georgieva said.