The heads of the International Energy Agency, the International Monetary Fund, and the World Bank Group met today as part of the coordination group they established in early April to maximize their institutions’ response to the energy and economic impacts of the war in the Middle East. At the conclusion of their meeting, they issued the following statement:
“As we noted earlier this month, the impact of the war is large, global and highly asymmetric, disproportionately affecting energy importers, particularly low-income countries. The shock has sent oil, gas and fertilizer prices soaring, raising concerns about food security and job losses as well. Some oil and gas producers in the Middle East have also seen a significant loss in export revenues.
The situation remains highly uncertain, and shipping through the Strait of Hormuz has not yet returned to normal. Even after regular shipping flows through the Strait resume, it will take some time for global supplies of basic commodities to return to pre-conflict levels – and fuel and fertilizer prices may remain high for a long time due to damage to infrastructure. Because of supply disruptions, shortages of key inputs are likely to have impacts on energy, food and other industries. The war has also forcibly displaced people, affected jobs, and reduced travel and tourism, which may take time to reverse.
Today we shared our latest assessments, ahead of the release of the IEA’s monthly oil market report and IMF’s global economic outlook on Tuesday 14 April. We also discussed the situations of countries most affected by the shock as well as the responses of our institutions. Our teams work closely, including at the country level, to leverage our expertise and assist countries with tailored policy advice and, in the case of the IMF and World Bank, financial support when needed.
We will continue to closely monitor and assess the impact of the war on energy markets, the global economy and individual countries, and coordinate our response and support to our member countries – working with and drawing on the expertise of other international organizations as needed to lay the foundations for a resilient recovery that provides stability, growth and jobs.
Source: International Energy Agency
