Dozens of countries in which the European Bank for Reconstruction and Development (EBRD) operates face a 1.5% increase in inflation if the war in Iran continues, according to the bank's president, Odile Renaud-Basso.
„The longer the US-Israeli war against Iran lasts and the more serious it becomes, <...> the deeper the economic crisis will be. "We believe that the oil price will remain at USD 100 per barrel for a long time, growth in the countries where we operate will slow down by 0.4 percentage points, and inflation there will rise by approximately 1.5%," she said in an interview with Euronews, answering the host's question whether the world would be "on the brink of a global economic shock" if the war drags on.
At the end of March, the bank warned of a risk of worsening economic prospects for the countries where it implements its programs due to the US and Israeli military operation against Iran. Later, the EBRD announced that it would invest EUR 5 billion this year in the economies of the countries most affected by the war. The bank is currently implementing investment projects in over 40 countries and territories around the world – in Europe, Central Asia, Africa and the Middle East.
Last week, International Monetary Fund Managing Director Kristalina Georgieva warned that a US and Israeli military operation against Iran would lead to higher inflation and lower economic growth worldwide.