‘World faces biggest energy shock since 1970s’

Published
1
In this file photo taken on April 13, 2022, the World Bank headquarters in Washington, DC, on April 13, 2022. —AFP
In this file photo taken on April 13, 2022, the World Bank headquarters in Washington, DC, on April 13, 2022. —AFP

WASHINGTON: Energy prices have surged since the Russian invasion of Ukraine and, along with other commodities, are likely to remain at “historically high” levels through 2024, endangering economic growth, the World Bank warned Tuesday.

“This amounts to the largest commodity shock we’ve experienced since the 1970s,” said Indermit Gill, the World Bank’s vice president for equitable growth, finance and institutions.

The shock — which is expected to push energy prices up 50 percent this year — is being aggravated by trade restrictions and rising prices for food, fuel and fertilizers.

“These developments have started to raise the specter of stagflation,” Gill warned in a statement on the World Bank’s Commodity Markets Outlook report.

Echoing the call from other officials at the World Bank and International Monetary Fund in recent days, he urged governments to “take every opportunity to increase economic growth at home and avoid actions that will bring harm to the global economy.” The report said the increases in energy prices in the past two years have been the largest since the 1973 oil crisis when the OPEC group of oil-producing countries declared an embargo.

Amid the war and Western sanctions on Moscow, the price of Brent crude is expected to average $100 a barrel this year, the highest since 2013, the report said.

Published in Dawn, April 27th, 2022

Follow Dawn Business on X, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Fixing bond markets
Updated 01 Oct, 2026

Fixing bond markets

Pension funds, insurance companies, mutual funds, retail investors, and eventually, foreign investors must become bigger participants in the market.
Call centre rackets
01 Oct, 2026

Call centre rackets

A NUMBER of recent raids conducted by the authorities in different cities point to the growing threat fraudulent ...
Homeward bound
01 Oct, 2026

Homeward bound

FIVE months after Somali pirates captured an oil tanker carrying a 19-member multinational crew, Somali maritime...
Kashmir unresolved
Updated 30 Sep, 2026

Kashmir unresolved

The just solution lies in India addressing the issue through a trilateral dialogue involving the legitimate representatives of the Kashmiri people and Pakistan.
Water shortage
30 Sep, 2026

Water shortage

THAT the country is entering the Rabi season with an anticipated water shortage of nearly 25pc, the lowest carryover...
Young hearts
30 Sep, 2026

Young hearts

THE observance may have passed, but the message of World Heart Day should not fade with it. The occasion is a useful...