ABNA24 - Global trade and economic growth are expected to slow down sharply amid the US-Israeli war with Iran, the UN’s trade and development organization said on Wednesday.
With the Strait of Hormuz effectively closed, around 20% of the world’s oil and gas flows have been disrupted. Ship transits dropped from around 130 per day in February to just six in March — a 95% decline — according to the UN Conference on Trade and Development (UNCTAD)’s latest rapid assessment.
The agency’s report says growth in global merchandise trade is projected to decelerate from 4.7% last year to between 1.5% and 2% this year.
“The Strait of Hormuz remains virtually closed, with effects spreading through the global economy within weeks by disrupting energy flows, raising prices and increasing financial pressure on developing countries,” UNCTAD says.
Shipping and insurance costs, inflation and uncertainty are on the rise, and with currencies in developing countries now weakened, imports such as fuel and food are even more expensive for residents.
/129
Your Comment