Many African economies activate crisis support mechanisms.

Several countries, including Kenya, have requested emergency financial assistance from the World Bank amid soaring fuel prices, which are directly impacting the cost of living and economic activity.

The World Bank (WB) says the conflict in Iran is having widespread impacts on the global economy , forcing many African nations to activate emergency financial mechanisms to cope with increasing budgetary pressures.

Approximately 27 countries have activated crisis support mechanisms since the conflict began in February. This development reflects the extent to which the economic shock from the Middle East is spreading to developing economies.

The main reasons are believed to be volatile energy prices, disruptions to the global supply chain, and difficulties in transporting fertilizers to developing countries.

These factors are adding further pressure on inflation and food security in many low-income countries.

Several countries, including Kenya, have requested emergency financial assistance from the World Bank amid soaring fuel prices, which are directly impacting the cost of living and economic activity.

Experts, along with the Africa Centres for Disease Control and Prevention (CDC), warn that this economic shock could have a particularly severe impact on vulnerable economies already burdened by public debt, climate change, and resource shortages.

The World Bank stated that its emergency response tools can quickly mobilize up to $25 billion to support countries facing crises, helping to mitigate the widespread impact of geopolitical instability on global economic growth and stability.

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(VNA/Vietnam+)

Source: https://www.vietnamplus.vn/nhieu-nen-kinh-te-chau-phi-kich-hoat-co-che-ho-tro-khung-hoang-post1112360.vnp