The World Bank Group on Thursday pledged to support vulnerable economies grappling with rising commodity prices and supply chain disruptions caused by the escalating conflict in the Middle East.
The organisation warned that the crisis is extending beyond energy markets, affecting fertilisers and other critical agricultural inputs, raising concerns over inflation and food security, particularly in import-dependent countries.
In a statement, the World Bank said it plans to scale up assistance through a combination of immediate financial aid, policy guidance, and private sector interventions to sustain growth and protect jobs.
“A number of the World Bank Group’s clients in emerging markets have reached out to us as the conflict in the Middle East has started to impact commodity prices and logistics.
”We are working with governments, the private sector, regional partners, and other stakeholders to help them through this new set of challenges,” the statement read.
The Bank highlighted the sharp price increases that have accompanied the crisis: crude oil rose nearly 40 per cent between February and March, liquefied natural gas shipments to Asia climbed by almost two-thirds, and nitrogen-based fertilisers surged nearly 50 per cent during the same period.
“Shipping route disruptions are increasing costs, and supply risks are spreading from energy into fertilisers and other critical agricultural inputs. We are moving quickly to help client countries navigate this crisis,” the statement added.
The Bank said it would leverage its active portfolio, crisis response toolkit, and pre-arranged financing facilities to provide immediate relief.
It also planned to deploy fast-disbursing instruments tied to sound policies to support economic recovery, while private sector arms will offer firms liquidity, trade finance, and working capital.
“Clearly, this is an evolving situation and we cannot predict the full range of impacts.
”The longer this lasts, and the more damage there is to critical infrastructure, the more challenging this will be for our clients.
”That said, we are determined to be helpful and do all we can to safeguard some of the hard-won economic progress that these countries are making,” the Bank said.
The announcement underscores the World Bank’s commitment to helping emerging markets weather external shocks, particularly those that threaten the livelihoods and food security of millions of people.
