World Bank official says war-driven oil price hikes to slash growth for big importers - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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Persistent high oil prices prompted by Russia’s invasion of Ukraine could cut a full percentage point off the growth of large oil-importing developing economies like China, Indonesia, South Africa and Turkey, a World Bank official said on Tuesday.

File image: A maze of crude oil pipes and valves.

Indermit Gill, the bank’s Vice President for Equitable Growth, Finance and Institutions, said in a blog posting that the war will deal further setbacks to growth for emerging markets already lagging in recovery from the COVID-19 pandemic and struggling with a range of uncertainties from debt to inflation.

“The war has aggravated those uncertainties in ways that will reverberate across the world, harming the most vulnerable people in the most fragile places,” Gill said.Some countries in the Middle East, Central Asia, Africa and Europe are heavily reliant on Russia and Ukraine for food, as the countries together make up more than 20% of global wheat exports.

“Before the war broke out, South Africa was expected to grow by about 2% annually in 2022 and 2023, Turkey by 2-3%, and China and Indonesia by 5%.”

 

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