Beijing (ANTARA) - The Chinese government agrees with the\nInternational Monetary Fund (IMF) report stating that the conflict in\nthe Middle East is causing a crisis in the global economy and energy\nsecurity.<\/p>\n
\u201cThe IMF report once again proves that the war not only causes\nnumerous casualties and losses but also severe adverse impacts,\nhindering global economic growth and improvements in people\u2019s\nlivelihoods. This is a war that should not have happened,\u201d said\nSpokesperson for the Chinese Foreign Ministry Guo Jiakun during a press\nconference in Beijing on Wednesday (15\/4).<\/p>\n
The IMF Managing Director Kristalina Georgieva previously stated that\nthe Middle East conflict has caused significant difficulties\nworldwide.<\/p>\n
Among the main negative impacts caused by the conflict is a shock to\nglobal supplies, resulting in a 13 per cent reduction in oil\ndistribution and 20 per cent in liquefied natural gas (LNG) per day, she\nsaid.<\/p>\n
\u201cThe international community, especially less developed countries,\nshould not have to bear this burden,\u201d Guo Jiakun emphasised.<\/p>\n
The top priority at present, according to Guo Jiakun, is to prevent\nthe recurrence of fighting by all means, resume traffic through the\nStrait of Hormuz, and restore peace and stability in the Gulf as soon as\npossible.<\/p>\n
\u201cThis needs to be done to prevent a war that has even greater impacts\non the global economy and energy security or even a humanitarian\ncrisis,\u201d Guo Jiakun added.<\/p>\n
The IMF states that supply disruptions are expected to cause refinery\nshutdowns, as well as fuel and food crises.<\/p>\n
\u201cAs a warning, because this is a negative supply shock, demand\nadjustments are inevitable,\u201d Georgieva stated.<\/p>\n
In addition, according to IMF calculations, a 10 per cent rise in oil\nprices in the long term could increase global inflation by 40 basis\npoints and reduce global output by 0.1 to 0.2 per cent.<\/p>\n
Regarding fuel supplies, Georgieva assessed that April will be a more\ndifficult period than the previous month in terms of global fuel supply\ndisruptions.<\/p>\n
\u201cWe are very concerned about the impact of oil and gas supply\ndisruptions; what we also realise is that March was a difficult month,\nbut April may be even more difficult. Why? Because tankers that departed\nbefore 28 February have reached their destinations and no new shipments\nwill arrive,\u201d Georgieva said.<\/p>\n
Georgieva also suggested that countries adopt energy-saving measures,\nsuch as making public transport free or encouraging remote work.<\/p>\n
The escalation of the US-Iran conflict, which began with attacks at\nthe end of February, has caused a de facto blockade of the Strait of\nHormuz, the main shipping route for oil and liquefied natural gas from\nPersian Gulf countries to global markets.<\/p>\n
This has also affected export activities and oil production in the\nregion.<\/p>\n
The US Navy, on Monday (13\/4), began blockading all maritime traffic\nentering and exiting Iranian ports on both sides of the waterway.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/china-comments-on-imf-predictions-regarding-middle-east-conflict-triggering-economic-crisis-1776304246", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }