Middle East War's Far-Reaching Impact: IMF Warns of Crises in Asia-Pacific and Africa

WASHINGTON (CNA) – The International Monetary Fund (IMF) warned today that the impact of the Iran war is not limited to the Middle East region, and some countries far outside the region may also suffer "very severe" consequences, especially energy-importing countries. According to Agence France-Presse, the Asia-Pacific and Sub-Saharan Africa regions are currently the most affected areas due to the almost interrupted passage through the Strait of Hormuz. For countries that rely on imported food, fertilizer, and energy, rising prices are a concern. Abebe Selassie, Director of the IMF's African Department, said at a press conference today: "Oil-importing countries, especially poor and resource-scarce countries, are facing widening trade deficits, rising living costs, and limited capacity to respond." He added: "The humanitarian consequences of the Middle East war will almost certainly be severe." This week, the IMF and the World Bank held their spring meetings in Washington, where IMF economists briefed government officials and the media on the latest economic assessment. The IMF report points out that for Sub-Saharan Africa within the IMF's statistical scope, an estimated 20 million people could fall into hunger. Among them, the Sahel region will see further increases in food prices due to widespread poverty, fertilizer shortages and high prices, and rising transportation costs. This does not include oil-exporting countries such as Nigeria and Algeria. Krishna Srinivasan, Director of the IMF's Asia and Pacific Department, said that small Pacific island nations further afield are also a concern because they are highly dependent on energy imports, and even with minor shipping disruptions, it takes a long time for ships to reach these islands. Looking at the entire Asia-Pacific region, not only small island nations but also face unique risks, as the region's spending on oil and natural gas accounts for almost twice the proportion of GDP compared to Europe. Among them, Malaysia and Thailand's spending on oil and natural gas accounts for about 10% of GDP, showing the region's high dependence on energy imports. (Compiler: Ji Jinling) 1150417