Tensions in Middle East Pose Ongoing Risks to Global Economy
Finance ministers from more than 10 countries have warned that tensions in the Middle East will have lasting consequences for global growth, inflation and financial markets, even if the conflict is permanently resolved.
In a joint statement released by the British government during the spring meetings of the International Monetary Fund (IMF) and the World Bank in Washington, they said renewed fighting, an expansion of the conflict or continued disruption in the Strait of Hormuz would pose serious additional risks to energy security, supply chains and economic stability.
The ministers said the impact on growth, inflation and markets would persist even after a stable resolution of the conflict.
The statement was signed by representatives of Britain, Australia, Japan, Sweden, the Netherlands, Finland, Spain, Norway, Ireland, Poland and New Zealand.
They also stressed that, given limited public finances, any domestic measures should be targeted at those most in need.
The ministers pledged to avoid protectionist measures and urged other countries not to restrict trade through export controls, stockpiling or other supply chain barriers