By Abbati Bako,pec,bsis, Political Strategy and Communications Consultant
The ongoing US-Israel-Iran conflict has sent shockwaves through the global economy, with experts warning of a potential stagflation scenario. Stagflation is a rare economic phenomenon where inflation rises while economic growth stagnates. Meaning that stagflation leads to inflation, unemployment, economic precarity, insecurity and so on.
*The conflict has led to——-
Oil Price Surge:
Brent crude prices have jumped over 25% since the start of the war, reaching around $120 per barrel, with some predictions forecasting prices could hit $100-$150 per barrel if disruptions persist.
Inflation Concerns:
Rising energy costs are expected to drive up inflation globally, with the US potentially seeing inflation rise to 3.7% and likewise in other advanced economies.
Economic Growth Slowdown:
The International Monetary Fund predicts a 0.15% reduction in global economic growth for every 10% rise in oil prices.
Oils is the backbone and life wire of global economic interplay; not only in less advanced economies but even in advanced economies of the Global Western Hemisphere.
*The impact is being felt worldwide——-
Asia and Europe:
More dependent on Middle Eastern oil and gas, these regions face significant economic challenges. Without oil global trade will be in tatters and diminished.
USA:
While less reliant on energy imports, the US is still vulnerable to higher gas prices and potential inflation.
Emerging Markets:
Currency pressures and higher energy costs threaten economic stability in all Continent of the of World
Experts warn that central banks of all countries of the world may struggle to respond, caught between controlling inflation and supporting economic growth. .
To be continued Insha’Allah
