The Heads of the International Energy Agency (IEA), IMF and World Bank Group have committed to ensuring a resilient recovery for member countries affected by the Middle East Crisis.
The Institutions made this known in a joint statement made available to the News Agency of Nigeria (NAN) in Abuja on Monday.
The statement said the institutions met on Monday as part of the coordination group established in April to maximise their institutions’ response to the energy and economic impacts of the war in the Middle East.
It noted that the impact of the war was substantial, global, and highly asymmetric, as well as disproportionately affecting energy importers, in particular low-income countries.
“The shock has led to higher oil, gas and fertiliser prices, triggering concerns about food security and job losses as well.
“Some oil and gas producers in the Middle East have also seen a dramatic loss of export revenue.”
The statement added that the situation remained very uncertain, and shipping through the Strait of Hormuz was yet to normalise.
It said even after a resumption of regular shipping flows through the Strait, it would take time for global supplies of key commodities to move back towards their pre-conflict levels.
The statement said the prices of fuel and fertiliser may also remain high for a prolonged period given the damage to infrastructure.
It said that due to supply disruptions, shortages of key inputs were likely to have implications for energy, food, and other industries.
The statement said the war has also forcibly displaced people, impacted jobs, and reduced travel and tourism, which may take time to reverse.
“Today, we shared our latest assessments, ahead of the release this Tuesday, April 14, of the IEA’s monthly Oil Market Report and the IMF’s World Economic Outlook.
“We also discussed the situations of the countries most affected by the shock as well as the responses by our institutions.
“Our teams are working closely, including at the country level, to leverage our respective expertise and help countries through tailored policy advice and, in the case of the IMF and World Bank, financial support where needed.”
The institutions said they would continue to monitor closely and assess the impact of the war on energy markets, the global economy and individual countries.
“We would also coordinate our response and support to our member countries.
“We will continue to work with, and draw on, other international organisations’ expertise as needed to lay the foundations for a resilient recovery that delivers stability, growth and jobs.”
NAN recalls that on April 1, the heads of the IEA, IMF and the World Bank Group issued a joint statement where they agreed to form a joint coordination group.
The group is aimed at strengthening their response to the energy and economic shocks triggered by the ongoing war in the Middle East
