The World Bank, International Monetary Fund (IMF) and International Energy Agency (IEA) are warning that the ongoing war in the Middle East could trigger food security challenges.
They say it could lead to job losses and high fuel prices in Ghana, other African countries and low-income economies.
This was contained in a joint statement issued in Washington DC on the sidelines of the World Bank/IMF Spring Meetings.
The heads of the three institutions met on Monday as part of a coordination group established in early April to strengthen their response to the conflict’s energy and economic impacts.
The institutions noted that “The shock has led to higher oil, gas and fertiliser prices, triggering concerns about food security and job losses as well.”
They added that “Some oil and gas producers in the Middle East have also seen a dramatic loss of export revenue.”
They further stated that “Even after a resumption of regular shipping flows through the Strait, it will take time for global supplies of key commodities to move back towards their pre-conflict levels—and fuel and fertiliser prices may remain high for a prolonged period given the damage to infrastructure.”
The World Bank, IMF and International Energy Agency also indicated that “Due to supply disruptions, shortages of key inputs are likely to have implications for energy, food, and other industries,” adding that the situation remains very uncertain.
“The war has also forcibly displaced people, impacted jobs, and reduced travel and tourism, which may take time to reverse,” they said.
The institutions assured that they will continue to closely monitor and assess the impact of the war on energy markets, the global economy and individual countries.
They also pledged to coordinate their response and support to member countries, “working with, and drawing on, other international organisations’ expertise as needed to lay the foundations for a resilient recovery that delivers stability, growth and jobs.”
The World Bank further stated that at the meeting, discussions focused on countries most affected by the shock and the response strategies being deployed.
It added that teams from the institutions are working closely, including at the country level, to provide tailored policy advice and, in the case of the IMF and World Bank, financial support where necessary.
