Washington DC, April 9: The International Monetary Fund (IMF), World Bank Group (WBG), and World Food Programme (WFP) on Thursday warned that the ongoing war in the Middle East is triggering major disruptions in global energy and food markets, with the poorest countries likely to face the harshest consequences.
In a joint statement issued after a high-level meeting in Washington DC, the heads of the three institutions said the conflict was already causing one of the largest shocks to global energy markets in recent history.
They said sharp increases in oil, gas and fertilizer prices, coupled with transport bottlenecks, were expected to drive up food prices worldwide and deepen food insecurity, particularly in low-income countries that depend heavily on imports.
“The Middle East war is upending lives and livelihoods in the region and beyond,” the statement said, adding that the economic fallout could intensify hardship for millions of vulnerable people.
The institutions expressed particular concern for countries with limited fiscal space and high debt burdens, warning that such governments may struggle to shield poor households from rising fuel and food costs.
According to the statement, spikes in energy prices and likely increases in food prices could worsen poverty, increase instability and place added pressure on fragile economies already grappling with multiple crises.
The IMF, World Bank and WFP said they would continue to closely monitor developments and coordinate efforts to support countries affected by the crisis.
“In accordance with our respective mandates, and building on existing response mechanisms, we will provide support to safeguard lives and livelihoods, and to lay the foundations for a resilient recovery that delivers stability, growth and jobs,” the statement said.
The IMF, which supports global financial stability and economic growth across its 191 member countries, said it would remain engaged in assessing macroeconomic risks.
The World Bank Group said it would continue using its financing and technical expertise to help countries manage economic shocks and protect vulnerable populations.
The WFP, the world’s largest humanitarian food assistance agency, said it would work to address rising food insecurity and support communities affected by conflict and economic disruption.
The joint warning comes amid growing global concern over the wider fallout of the Middle East conflict on inflation, supply chains and economic stability.
