Abuja: The heads of the International Energy Agency, International Monetary Fund (IMF), and World Bank Group have agreed to form a joint coordination group.
The group aims to strengthen its response to the energy and economic shocks triggered by the ongoing war in the Middle East.
The institutions announced this in a joint statement issued on Wednesday. They stated the conflict has disrupted livelihoods in the region and led to a major global energy supply shortage.
It added that the crisis’s impact is substantial, global, and uneven, with energy-importing, low-income nations most affected.
The statement said the effects are seen in rising oil, gas, and fertiliser prices, as well as growing food inflation concerns.
Global supply chains, including commodities like helium, phosphate, and aluminium, and tourism have also suffered due to flight disruptions at major Gulf hubs.
Market volatility, weaker emerging-market currencies, and inflation fears could lead to tighter monetary policy and slower growth.
At times of high uncertainty, it is crucial for our institutions to monitor developments, align analysis, and coordinate support for policymakers.
This especially applies to countries most exposed to the war’s downstream impacts and those with limited policy options and higher debt.
The statement said the coordination group would clearly define and assess its objectives in addressing the severity of the crisis across regions.
It said it would do so through coordinated data sharing on energy markets and prices, trade flows, fiscal and balance-of-payments pressures, inflation trends, export restrictions on key commodities, and supply chain disruptions.
“The group will coordinate a response mechanism that may include: targeted policy advice, assessment of potential financing needs and related provision of financial support (including through concessional financing).
“It may also include use of risk mitigation tools as appropriate,” it said
The statement said the group would mobilise other multilateral, regional, and bilateral partners to ensure efficient, coordinated assistance to countries in need.
It said that the group would work with and draw on other international organisations’ expertise as needed.
We will work together to strengthen global economic and financial stability, support energy security, and help affected countries recover and grow.