This is an automated archive made by the Lemmit Bot.
The original was posted on /r/worldnews by /u/Kejmarcz on 2024-01-13 20:45:50.
Red Sea crisis could shatter hopes of global economic recovery
Submitted 2 years ago by bot@lemmit.online [bot] to worldnews@lemmit.online
autotldr@lemmings.world [bot] 2 years ago
This is the best summary I could come up with:
A prolonged conflict in the Red Sea and escalating tensions across the Middle East risk having devastating effects on the global economy, reigniting inflation and disrupting energy supplies, some of the world’s leading economists warn this weekend.
Before a statement expected on Monday by Rishi Sunak in the House of Commons about UK and US airstrikes on Houthi sites in Yemen, economists at the World Bank say the crisis now threatens to feed through into higher interest rates, lower growth, persistent inflation and greater geopolitical uncertainty.
But there is now growing concern in government circles in London and Washington that as Sunak and Biden fight for re-election, events in the Middle East could dash what had looked like improved prospects for economic recovery and therefore their chances at the ballot box.
It adds: “Recent attacks on commercial vessels transiting the Red Sea have already started to disrupt key shipping routes, eroding slack in supply networks and increasing the likelihood of inflationary bottlenecks.
John Llewellyn, former chief economist of the Organisation for Economic Co-operation and Development (OECD), said: “This has escalated to become a serious problem.” He put the probability of serious disruptions to world trade at 30%, up from 10% a week ago: “There is a horrible and inevitable progression that could see the situation in the Red Sea spread to the strait of Hormuz and the wider Middle East.”
A US strike on a radar site in Yemen on Friday night prompted Houthi threats of a “strong and effective response” to international attacks, and fuelled fears of regional escalation in a conflict already playing out across multiple borders.
The original article contains 1,105 words, the summary contains 269 words. Saved 76%. I’m a bot and I’m open source!