Energy Crisis Is Macro Risk

Delegates at the International Monetary Fund and World Bank spring meetings said the energy crunch has spread beyond oil and power markets into inflation, growth and public finances. (worldbank.org)k, International Monetary Fund and International Energy Agency said on April 13 that they were coordinating their response to the war-driven shock hitting energy markets and national economies. (worldbank.org) Malawi emerged as one of the countries seeking help. Finance Minister (worldbank.org)g the conflict. (mwnation.com) That request reflects a wider problem for import-dependent economies: higher fuel prices push up transport, food and electricity costs at the same time, while governments face pressure to subsidise households and keep foreign currency flowing. (imf.org)f)) The IMF’s April 2026 World Economic Outlook said the global economy had been “disrupted” by the Middle East war and projected world growth at 3.1% in 2026, down from about 3.4% in 2024-25. (imf.org) The World Bank has already tied that (imf.org)forecast to 4.2% from 5.0% in 2025 and said a sustained 50% increase in fuel prices could reduce household incomes in the region by 3% to 4%. (worldbank.org) At the sp(imf.org)on and private-capital-backed projects rather than treating electricity as a narrow infrastructure issue. The bank said 215 million people have already gained new or improved electricity access through its programs, with a target of 575 million. (worldbank.org) (live.worldbank.org)re backing Mission 300, an initiative to connect 300 million people to electricity by 2030. The bank presented that effort as part of a broader plan to build more reliable and diversified power systems before the next supply shock hits. (worldbank.org) (live.worldbank.org) For(live.worldbank.org)ssue is whether governments can reduce exposure to imported fuel before energy volatility shows up again in inflation, budgets and growth forecasts. (mwnation.com) (imf.org) (worldbank.org)) (mwnation.com)