By Enyichukwu Enemanna
The World Bank, International Monetary Fund (IMF), World Trade Organisation (WTO), and the International Energy Agency (IEA) have met in Washington where they embarked on the impact assessment of the conflict in the Middle East, cautioning that the war has generated substantial and highly asymmetric impacts on energy supplies, food security, and economic activity across countries and regions.
Heads of the global bodies at the weekend expressed concern that while the world economy continues to show resilience, the effects of the conflict were disproportionately affecting the most vulnerable countries, arising from higher fuel and fertiliser prices, cost uncertainty and risks to jobs and livelihoods.
The multilateral agencies in a statement jointly signed by the World Bank President, Ajay Banga; IMF Managing Director, Kristalina Georgieva; WTO Director General, Dr. Ngozi Okonjo-Iweala; and the Executive Director of IEA, Dr. Fatih Birol said they were tracking and analysing measures taken by governments to address the economic impact of the conflict, with a view to promoting transparency, sharing lessons, and identifying emerging risks.
“The war in the Middle East is generating substantial and highly asymmetric impacts on energy supplies, food security, and economic activity across countries and regions.
“While the global economy continues to show resilience, the effects of the conflict are disproportionately affecting the most vulnerable countries through higher fuel and fertiliser prices, increased uncertainty, and risks to jobs and livelihoods. Higher fertilizer prices are of particular concern as many countries enter the planting season.
“At the same time, global oil inventories are being drawn down at a record pace in response to the major loss of supply through the Strait of Hormuz.
“If shipping flows do not return to normal, continued rapid depletion of global oil inventories ahead of peak summer oil demand in the Northern Hemisphere would present increasing risks for fuel security, market conditions, and broader economic resilience.
“We met to take stock of the impacts, discuss the situation in the most affected countries and regions, and coordinate our support to those in need. We also explored options further to enhance collective support through multilateral and bilateral actions”, the statement reads in part.
Heads of multilateral agencies highlighted the importance of close monitoring of fertiliser supply chains, energy and economic developments, and policy responses.
