The World Bank Group has reported growing concern among emerging market economies as the ongoing conflict in the Middle East begins to drive up commodity prices and disrupt global logistics.
In a statement, the institution said several client countries have reached out for assistance as they grapple with rising costs and supply chain uncertainties. The World Bank Group is currently working closely with governments, private sector players, and regional partners to help manage the evolving challenges.
It noted that shipping route disruptions are increasing transportation costs, while supply risks are spreading beyond energy markets into fertilizers and other key agricultural inputs. Between February and March, crude oil prices surged by nearly 40 percent, while liquefied natural gas shipments to Asia rose by almost two-thirds. Prices of nitrogen-based fertilizers also jumped close to 50 percent in March, raising concerns over agricultural production and food security.
The World Bank Group said it is closely monitoring global market developments and remains in direct contact with the most affected countries to better understand conditions on the ground.
In response, the institution is moving swiftly to deploy support at scale, combining immediate financial assistance with policy expertise and private sector backing. It plans to utilize its full range of financial instruments, including crisis response tools and pre-arranged financing facilities, to support governments, businesses, and households.
“Our aim is to deliver immediate relief while laying the groundwork for recovery,” the statement said, adding that efforts will gradually shift toward fast-disbursing financial support anchored in sound economic policies.
Through its private sector arms, the World Bank Group will also provide firms with liquidity, trade finance, and working capital to help sustain operations amid rising costs and disrupted trade flows.
While the situation remains highly uncertain, the institution warned that prolonged conflict and damage to critical infrastructure could significantly worsen the economic outlook for affected countries.
Nevertheless, the World Bank Group reaffirmed its commitment to mitigating the impact of the crisis and safeguarding the economic progress achieved by its client countries in recent years.
–World Bank
