Live Events
as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now!
(You can now subscribe to our
(You can now subscribe to our Economic Times WhatsApp channel
The World Bank on Thursday said that it is moving quickly to help client countries to navigate crisis due to Middle East war.It has raised concerns over the widening economic fallout from the ongoing conflict in the Middle East, warning that rising commodity prices and disrupted logistics are beginning to strain emerging market economies In a statement, the institution said several client countries have reached out as the crisis starts to ripple through global supply chains . Governments, private sector players and regional partners are now working closely with the World Bank to navigate the mounting challenges."We are closely monitoring global market developments, and we are in direct contact with the most affected client countries to understand what they are facing on the ground. Shipping route disruptions are increasing costs, and supply risks are spreading from energy into fertilizers and other critical agricultural inputs. Crude oil prices increased by nearly 40 percent between February and March, the price of liquefied natural gas shipments to Asia rose by almost two-thirds, and the prices of nitrogen-based fertilizers increased by nearly 50 percent in March," the World Bank said."We are ready to respond at scale — combining immediate financial relief with policy expertise and private sector support for the recovery of jobs and growth. We will draw on the full range of instruments we have available to support governments, firms, and households. Our aim is to deliver immediate relief by leveraging our active portfolio, our crisis response toolkit, and pre-arranged financing facilities." it added.However, it cautioned that the situation remains fluid, with the full economic impact still uncertain. “The longer the conflict persists and the greater the damage to critical infrastructure, the more severe the challenges will be,” the statement noted.Despite the uncertainty, the World Bank reaffirmed its commitment to helping countries protect hard-earned economic gains and navigate the crisis.