A coalition of global institutions representing the financial, trade, and energy sectors has warned of mounting risks to economies worldwide stemming from the ongoing conflict in the Middle East.
In a joint statement issued on 29 May, the heads of the International Energy Agency (IEA), International Monetary Fund (IMF), World Bank Group, and World Trade Organization (WTO) said they met on 28 May as part of a high-level coordination group established in April to maximize their institutions’ response to the energy, trade, and economic impacts of the conflict.
“The war in the Middle East is generating substantial and highly asymmetric impacts on energy supplies, food security, and economic activity across countries and regions,” the statement read.
“While the global economy continues to show resilience, the effects of the conflict are disproportionately affecting the most vulnerable countries through higher fuel and fertilizer prices, increased uncertainty, and risks to jobs and livelihoods.”
Global analytics firm BMI and the Asian Development Bank (ADB) have identified the Philippines as among the countries most severely and rapidly affected by the energy shock. The country’s heavy reliance on oil imports, coupled with limited fiscal and monetary policy flexibility, has prompted institutions such as BMI, the ADB, the IMF, and the World Bank to revise their Philippine growth forecasts downward.
The joint statement said the heads of the four institutions met on 28 May “to take stock of the impacts, discuss the situation in the most affected countries and regions, and coordinate our support to those in need.”
“We also explored options to further enhance collective support through multilateral and bilateral actions,” the statement added.
Earlier, in a joint statement issued on 18 May, the World Bank and ADB, together with several other multilateral development banks (MDBs), said they were prepared to combine financing, policy support, private-sector instruments, and technical expertise to help countries manage economic disruptions, preserve development gains, and strengthen long-term resilience.
Apart from measures related to the Middle East conflict, the World Bank has also recently approved loans totaling $1.6 billion for the Philippines to support the agriculture and education sectors.
The latest joint statement said the heads of the IEA, World Bank, IMF, and WTO would remain in close contact as the situation evolves and continue coordinating their organizations’ efforts to support the countries most affected by the crisis and safeguard global economic stability.