Possible Revival of Inflation Crisis Due to Middle East Conflicts
The IMF warns from the escalating Middle East conflicts that could trigger inflation and disrupt planned interest rate cuts, impacting the global economy.
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In its latest World Economic Outlook report, The International Monetary Fund (IMF) has raised concerns that an escalation in the ongoing conflict in the Middle East could potentially lean to an inflationary crisis and disrupt the anticipated decline in interest rates. Such disruptions could negatively impact global economic growth. The IMF also noted that, despite high interest rates, global economic activity has shown unexpected resilience since October 2023, with employment and income levels performing better than anticipated.
Impact of Geopolitical Tensions on Commodity Prices
In this report, the IMF expressed concerns over a possible surge in commodity prices triggered by increased geopolitical tensions in the Middle East. This surge could hinder the current process of disinflation and postpone the easing of central bank policies, which would have negative repercussions for global economic stability.
Additionally, the report warned that the volatility in oil prices has intensified, especially with the Iranian attack on Israel and the uncertain outcomes of potential Israeli responses.
The report also mentioned that continued attacks in the Red Sea and the ongoing Ukraine war may cause further supply shocks, hindering global recovery. Additionally, slower-than-anticipated declines in core inflation due to persistent labor market tightness or a stalling Chinese recovery could also negatively alter economic forecasts.
Economic Projections and Challenges Ahead
The IMF‘s 2024 forecast slightly raises growth by 0.1% from earlier predictions, though growth remains low historically. Euro area growth is expected to improve from 0.4% in 2023 to 0.8% in 2024 and 1.5% in 2025, influenced by the impact of the Ukraine war. U.S. growth is anticipated to rise to 2.7% in 2024 then decrease to 1.9% in 2025 due to fiscal tightening and softer labor markets.
The report emphasizes the resilience of the global economy amidst challenges such as tighter monetary policies, the ongoing effects of the pandemic, geopolitical tensions, and other structural issues impacting long-term growth.
While there are signs of economic resilience and marginal growth improvements, the IMF cautions against potential new crises and the need for vigilant monitoring of global economic trends and policy adjustments.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
Ensuring comprehensive health care and fostering innovation and job growth within the health sector.
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The Council of Health Insurance and the Saudi Insurance Authority began implementing this decision, requiring employers to provide insurance for domestic workers if their number exceeds four.
The general requirements for applying benefits and coverage under the policy include submitting a medical disclosure form, obtaining approval from the health insurance company, and insuring all workers.
This mandatory health insurance initiative is part of the Council of Health Insurance and the Insurance Authority‘s efforts to ensure comprehensive care, prevention, justice, transparency, and excellence in performance for all stakeholders.
The decision aims to achieve comprehensive health care, sustain health coverage, and encourage health insurance companies and healthcare providers to develop new products and create job opportunities in medical and non-medical specialties.
Iman Al-Tariqi, the official spokesperson of the Council of Health Insurance, explained that the domestic workers’ insurance policy covers primary care, public health, emergency cases, hospitalization without a deductible, emergency treatments for clinics with unlimited visits, vaccinations, and examinations.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
