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Us, Iran Conflict Could Hit Emerging Market Economies, Fitch Warns #selemediaafrica #selemedia #johnselephilip
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Global credit rating agency Fitch
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Ratings has warned that the growing
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conflict between the United States and
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Iran could create serious economic
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challenges for many emerging market
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economies around the world.
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In a new report, the agency said
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escalating tensions in the Middle East
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may disrupt global energy supplies,
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especially oil and gas exports from the
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Gulf region. Such disruption could push
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global energy for prices higher and
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trigger economic pressure on countries
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that depend heavily on imported f.
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According to Fitch,
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rising oil prices are likely to be the
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most direct channel through which the
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conflict could affect emerging markets.
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Many developing economics rely heavily
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on imported energy, meaning higher fuel
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prices could increase government
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spending, raise inflation, and weaken
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national currencies.
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The report also warned that continued
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conflict could damage global investor
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confidence. If investors become more
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cautious, emerging markets may face
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difficulty borrowing money from
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international financial markets leading
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to higher borrowing cost and tighter
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financial conditions.
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>> Another concern highlighted by Fij is
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that the conflict could strengthen the
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US dollar making it more expensive for
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developing countries to repay dollar
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denominated debts.
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This could place additional pressure on
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countries already facing economic
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challenges.
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>> Beyond energy markets, the conflict
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could also affect emerging economics
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through reduced tourism, lower
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remittances from workers in the Gulf
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region, and disruptions to global trade
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routes.
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However, fish also noted that some oil
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producing emerging economics could
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benefit from higher energy prices as
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increased export revenues may help
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improve their financial positions.
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As tension in the Middle East continue,
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economics say the situation could have
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farreaching consequences not only for
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regional stability but also for the
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broader global economy.
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Reporting for you, I'm Susan Danielle.
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Stay connected to C Media Africa for
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more in-depth analysis.
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>> We must unite now. We must have one
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army. We must have one currency. We must
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have one foreign policy. We must be
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united.
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And I can hear the Osagia for saying I
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do not want to be the leader of that
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country. I simply want unity. And I'm
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saying that we must leave here with one
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united government. They listen not to
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the USA for I can still hear
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those immortal words.
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of the year
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#World News