The end of the war does not mean the end of fuel problems. “They will stay with us for longer”
The end of the war would not mean the end of fuel problems. Time will be needed to eliminate disruptions in supply chains. In addition disruptions are likely to worsen in the coming weeks even if the Strait of Hormuz reopens – said Kristalina Georgieva, head of the International Monetary Fund (IMF).
In turn, the finance ministers of 11 countries, including Poland, warned that The conflict in the Middle East, even if permanently resolved, will continue to impact the global economy.
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Fuel crisis. The IMF warns
“We are concerned about the physical breakdown of supply chains. We are already seeing, especially in Asia, which is heavily dependent on imports from the Persian Gulf, that there are shortages there” Kristalina Georgieva said on Wednesday at a press conference in Washington.
“We have to realize that this won't go away overnight, even if the war ends tomorrow. Why? Because a tanker is a slow-moving ship.”
She added: “We must be prepared for the impact of supply disruptions to deepen in the coming weeks.”
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War in the Middle East – impact on the economy
Finance ministers of 11 countries, including Poland, warned on Wednesday that The conflict in the Middle East, even if permanently resolved, will continue to impact the global economy, including economic growth, inflation and financial markets.
We call for a quick and lasting solution to the conflict through diplomatic methods, which will mitigate its impact on economic growth, energy prices and living standards, which particularly affects the poorest, we read in a joint statement of the Ministers of Finance on Wednesday. Poland, Great Britain, Australia, Finland, Spain, the Netherlands, Ireland, Japan, Norway, New Zealand and Sweden.
The ministers stressed that resumption of fighting, escalation of the conflict or further disruption of transport through the Strait of Hormuz threaten global economic and financial stability and supply chains. Even if the conflict is resolved, its impact on the global economy will persist.
Ministers appeal: Russia cannot gain from the war
Representatives of 11 countries called for all countries to avoid protectionismincluding unjustified export controls, stockpiling and other barriers to international trade.
The authors of the statement declared further actions to support energy diversification, including the transformation towards non-renewable energy sources and strengthening energy efficiency.
In the text published on the website of the British Ministry of Finance, it was noted that Russia cannot be allowed to benefit from the conflict.
Source: Financial Times, PAP
