How the War in the Middle East Is Affecting Energy, Trade, and Finance
you are currently viewing::How the War in the Middle East Is Affecting Energy, Trade, and FinanceMarch 30, 2026-Energy prices, supply chains, and financial markets are the main transmission channels, but the regional effects will vary significantly The shock is global, yet asymmetric. Energy importers are more exposed than exporters, poorer countries more than richer ones, and those with meager buffers more than those with ample reserves. Beyond its painful human toll, the war has caused serious disruption to the economies of the most directly affected countries, including damage to their infrastructure and industries that could become long-lasting. Although these countries are resilient, their short-term growth prospects will be negatively affected. Source: imf.org |
March 30, 2026- Overview
Before the onset of the conflict in the Middle East,global growth had surprised to the upside in early 2026,accompanied by a rise in goods trade at the turn of the year.
High-frequency indicators in February pointed to strengthening global activity,alongside improving prospects for both the manufacturing and services sectors.
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March 26, 2026-Introduction
The conflict in the Middle East is testing the resilience of the global economy.
The outlook is surrounded by high uncertainty and reflects the interaction of two opposing forces:
On the upside, growth is supported by strong momentum in technology-related investment and production, lower tariff rates than previously assumed, and carry-over from robust outcomes in 2025.
March 26, 2026- ETFGI reports actively managed ETFs globally hit new US$2.15 Trillion record amid 71 straight months of net inflows at the end of February. During February the actively managed ETFs industry globally gathered net inflows of US$91.15 billion, bringing year-to-date net inflows to a record US$167.58 billion, according to ETFGI's February 2026 Active ETF industry landscape insights report, an annual paid-for research subscription service.
March 24, 2026-During the Great Depression, as he saw ordinary people's purchasing power collapse, Federal Reserve Chairman Marriner Eccles warned that excessive saving by the rich was draining demand and deepening the downturn. "To protect them from the results of their own folly," Eccles told the Senate in 1933 testimony, "we should take from them a sufficient amount of their surplus to enable consumers to consume and business to operate at a profit."