Global economic institutions have emphasized that the world economy has shown resilience despite the impact of the Middle East conflict. The International Energy Agency (IEA), International Monetary Fund (IMF), World Bank Group (WBG), and World Trade Organization (WTO) issued a joint statement following a meeting to address the economic consequences of the conflict. They highlighted the need for continued international cooperation to ensure trade, energy supplies, and economic stability.
The institutions acknowledged the varying effects of the conflict on different countries and sectors. While some economies experienced slower growth and increased inflation, the global economy overall remained resilient. The impact of the conflict has been uneven, affecting energy supplies, food security, commodities, and economic activity across regions, raising concerns about growth and price stability.
Despite some easing in commodity markets, the institutions cautioned that risks persist. They called for progress towards resolving the conflict and reopening the Strait of Hormuz to alleviate strains on energy markets and transit of goods. While fuel and fertiliser prices have decreased since the previous meeting, uncertainties remain high, and the repercussions of the conflict could persist, necessitating vigilance and cooperation from governments and the international community.
Governments were urged to uphold freedom of navigation, support economic recovery, protect jobs, enhance energy and food security, and bolster resilience against future shocks. The institutions committed to ongoing coordination to monitor energy, trade, and economic developments closely. They stand ready to provide further support and assist countries in enhancing their energy, food, trade, and economic resilience as the situation evolves.
