World Bank chief warns against focusing only on Middle East crisis

Global financial officials are set to meet in Washington this week to discuss the economic consequences of the war in the Middle East, but President of the World Bank Ajay Banga has warned against losing sight of longer-term structural challenges.

He highlighted a looming global jobs shortage for young people in developing economies, Caliber.Az reports, citing foreign media.

Banga estimated that around 1.2 billion people in developing countries will reach working age over the next 10–15 years, while current growth trends would generate only about 400 million jobs.

This could leave a shortfall of up to 800 million jobs.

He said attention to short-term crises such as the conflict in the Middle East is distracting from longer-term challenges, including employment, access to electricity, and clean water, stressing the need to address both simultaneously.

Against the backdrop of the war between the United States and Iran and associated risks to the global economy — including inflationary pressures and threats to energy supplies through the Strait of Hormuz — the conflict is expected to be a key topic at the spring meetings of the International Monetary Fund and the World Bank in Washington.

At the same time, the World Bank plans to focus on improving investment climates in developing countries, expanding infrastructure and key industries, and broadening access to basic resources such as electricity and clean water.

By Bakhtiyar Abbasov