Middle East conflict increases demand for Middle Corridor - IMF

The conflict in the Middle East could lead to an increase in transit traffic along the Middle Corridor, according to the International Monetary Fund.

“A more protracted conflict could lead to a redirection of financial and tourist flows toward Georgia, as well as an increase in transit through the Middle Corridor,” the fund’s report says.

According to IMF analysts, an escalation of the conflict in the Middle East could lead to a further decline in tourist flows from Israel and the Gulf countries, intensify inflationary pressures, and tighten financial conditions.