New Delhi, April 16 -- The economic fallout from the war in the Middle East is turning global, and the International Monetary Fund (IMF) in a recent report warned that the poorest and most vulnerable countries will again be hit hardest.

In a new assessment of policy priorities, the IMF said the shock comes when "policy space has eroded, and international cooperation is weaker," leaving little room for error.

"Countries that pair financial strength with credible policy frameworks, strong institutions, vibrant private sectors, and agile policymaking enjoy more resilience to shocks, and are better able to promote economic growth and job creation, " IMF said in its report. The appropriate response, the Fund noted, "depends on how the shock ...