IMF on Iran War: Global growth estimates have been estimated to be lower due to the Iran war. Kristalina Georgieva, Managing Director of the International Monetary Fund, has this to say. He has said that due to the war in the Middle East, global growth estimates will reduce. Georgieva said in Washington on Thursday that this conflict has created a lot of difficulties in the region and the whole world, due to which this has to be done.
If there had been no shock…
Georgieva says that if this shock had not happened, the world would have been in a much better situation than it is today. We would have been increasing our growth estimate, but now our estimate will have to be reduced. Earlier, global growth was increased to 3.3%. In such a situation, there was a preparation to increase them in the estimate coming on Tuesday. But the war on 28th February has changed the entire situation.
The global economy has been hit due to the Middle East.
Due to the conflict in the Middle East and the closure of the global route Strait of Hormuz by Iran, the prices of oil and natural gas have increased. Oil refineries, tanker terminals and other energy infrastructure have been damaged during attacks in this war. There has also been a shortage in the supply of fertilizer on which farmers around the world depend. Apart from this, due to huge reduction in supply of gas and oil, business and consumers have been affected.
IMF, World Bank and WFP issued joint statement
The IMF, World Bank and WFP have said that the war in West Asia has created the biggest disruption in global energy markets. This will have a deep impact on food prices and food security. These three organizations have issued a joint statement. It says that the biggest burden of rising food prices will be on the world’s vulnerable population. Sharp increases in oil, gas and fertilizer prices, as well as transportation constraints, will inevitably lead to increases in food prices and food insecurity.
The institutions said they will closely monitor the situation and coordinate all resources available to support people affected by the crisis. The statement also said that especially in low-income and import-dependent countries, increases in fuel and food prices will hit vulnerable households the hardest due to the limited fiscal capacity of governments. The three entities assured that they will continue to support long-term recovery aimed at protecting lives and livelihoods, and ensuring stability, growth and employment.
Recently there has been a two-week ceasefire between Iran and America.
However, the biggest turning point in this war was seen on Tuesday. When Iran and America announced ceasefire. This announcement was made at a time when President Donald Trump had warned that an entire civilization would end tonight. The impact of the damage caused by this war can be estimated from this statement of the Managing Director of IMF. America has agreed to a conditional ceasefire of two weeks.
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