W’Bank, IMF, WTO, Others Meet over US, Iran War, Say Conflict Affecting Most Vulnerable Countries

Ndubuisi Francis in Abuja

Heads of the World Bank, International Monetary Fund (IMF), World Trade Organisation (WTO), and the International Energy Agency (IEA) at the weekend met in Washington D.C., United States of America, to assess the conflict in the Middle East, with a warning that the war was generating substantial and highly asymmetric impacts on energy supplies, food security, and economic activity across countries and regions. 

They noted that while the global economy continued to show resilience, the effects of the conflict were disproportionately affecting the most vulnerable countries through higher fuel and fertiliser prices, increased uncertainty, and risks to jobs and livelihoods. 

In a joint statement 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, the multilateral agencies 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 statement said, “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.”

Heads of multilateral agencies highlighted the importance of close monitoring of fertiliser supply chains, energy and economic developments, and policy responses. 

“In this regard, we are 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.

“We will remain in close contact as the situation evolves and continue coordinating our efforts to support the countries most affected and global economic stability,” the statement said.