The world's leading economic and energy institutions have called for renewed efforts to resolve the conflict in the Middle East and reopen the Strait of Hormuz, warning that although the global economy has remained resilient, the war continues to pose risks to growth, inflation and global trade.
In a joint statement issued after a high-level coordination meeting on July 7, the heads of the International Energy Agency (IEA), the International Monetary Fund (IMF), the World Bank Group (WBG) and the World Trade Organization (WTO) said uncertainty remains elevated despite an easing in fuel and fertilizer prices since their previous meeting in June.
The four organisations, which formed a coordination group in April to respond to the energy, trade and economic fallout from the conflict, reviewed developments in global markets, assessed the impact on vulnerable countries and discussed further measures to support affected economies.
"The global economy has been broadly resilient to the shock from the war in the Middle East," the organisations said, noting that while some economies have seen slower growth and higher inflation, the effects have been uneven across countries and sectors.
They said the conflict has disrupted energy supplies, food security, commodity markets and economic activity in many regions, heightening concerns over global growth prospects and price stability.
The organisations urged "further progress toward a resolution to the conflict and the reopening of the Strait of Hormuz," stressing that governments and the international community should continue working together to safeguard freedom of navigation through the strategic waterway and around the world.
Although energy prices have moderated in recent weeks, they cautioned that energy markets and global supply chains remain under strain, with the potential for the conflict's economic effects to persist.
The joint statement called on governments to remain vigilant and strengthen cooperation to support economic recovery, protect jobs and livelihoods, bolster energy and food security, improve port infrastructure and trade facilitation, and build resilience against future shocks.
The organisations also pledged to continue coordinating closely, monitor developments in energy, trade and the global economy, and stand ready to provide additional support as conditions evolve.
Their assistance, they said, will focus on helping countries strengthen energy security, food systems, trade resilience and broader economic stability in the face of continuing geopolitical uncertainty. - TradeArabia News Service
