IMF flags ‘very severe’ global economic risks from Iran conflict, warns of rising costs
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The IMF warns that the conflict in Iran could have severe global economic consequences, particularly for energy-importing countries in East Asia and Sub-Saharan Africa. The crisis could push 20 million people towards hunger in Sub-Saharan Africa and exacerbate poverty in vulnerable regions.
The IMF has warned that the conflict in Iran could have severe global economic consequences. Energy-importing countries in East Asia and Sub-Saharan Africa are likely to be the most affected. The closure of the Strait of Hormuz has led to elevated oil prices, which could deteriorate trade balances and raise living costs in vulnerable countries. Sub-Saharan Africa could see 20 million people pushed towards hunger due to scarce and expensive fertilizer and rising transportation costs. The IMF is urging governments to adopt temporary and limited measures to mitigate the crisis. The economic effects of the conflict are hitting at a time when international aid is in decline.
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