Investors Aren’t Buying Into Policymakers’ Gloom
Officials gathered in Washington say markets are too buoyant.
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The IMF and World Bank are historically beacons of capitalism and financial market wisdom. But at their spring meetings this week in Washington, the emerging theme has a contrarian vibe: Investors are underestimating the economic damage from the Iran war.
The growing consensus is that fallout from the conflict will continue to grow — even if a lasting peace is negotiated soon. Officials see structural change involving higher costs, longer trade routes and rising geopolitical uncertainty that will limit growth potential.