Global Economy Weathers Middle East Conflict Shock
Import-dependent economies are accelerating renewables and nuclear as the conflict drives up inflation, interest rates and energy costs, the World Bank said.
- International Monetary Fund chief Kristalina Georgieva welcomed a recent agreement between the United States and Iran to cease hostilities and reopen the Strait of Hormuz as a major diplomatic breakthrough.
- The Middle East conflict continues generating significant inflation pressures, prompting the European Central Bank to raise rates to 2.25% last week to combat renewed cost-of-living challenges.
- In the United States, inflation hit an annual rate of 4.2% in May, while energy shocks have affected 17% of Qatar's capacity to export liquefied natural gas.
- Maurice Obstfeld, a former chief economist at The IMF, said the region's peace and stability have been shaken, noting that vulnerability "raises Iran's leverage in the region."
- Over the long term, this energy shock is likely to accelerate a transition to renewables, as Daan Walter at Ember noted investments now promise returns in closer to two years.
21 Articles
21 Articles
Global Economy Weathers Middle East Conflict Shock
Kristalina Georgieva, the IMF chief, reported no immediate global slowdown from the Middle East conflict but flagged high risks. She noted the recent U.S.-Iran accord as a breakthrough, yet energy supply concerns persist. Some regions face severe impacts, while others maintain economic momentum.
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Its director, Kristalina Georgieva, has ruled out that the effects of the war are going to cause a global slowdown.
The signing of the agreement, announced on Friday in Switzerland, marks the end of the three-month war between the US and Iran. With it, the recovery of the global economy, which was shaken by the entire war in the Middle East. It will take some time for all damaged sectors of the economy to stabilize, economic experts point out.
The evolution of the world economy is not as bad as anticipated in April in the face of the crisis in the Middle East triggered by the US and Israel invasion of Iran at the end of February. In the International Monetary Fund blog, the Director General is advancing this week that the world economy is resisting this crisis, but that it is necessary to continue in a state of high vigilance
Africa bears brunt as global economy weathers Middle East shock, IMF Says
The global economy may be weathering the economic fallout from the Middle East conflict better than many analysts initially feared, but beneath the headline resilience lies a widening divide that is hitting Africa disproportionately hard. In its latest assessment of the global economy, the International Monetary Fund (IMF) said strong economic momentum in the United […] The post Africa bears brunt as global economy weathers Middle East shock, IM…
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