Accra:Despite ongoing conflicts in the Middle East affecting global energy markets and trade, many countries in the South Caucasus and Central Asia are demonstrating economic resilience, according to Jihad Azour, Director of the Middle East and Central Asia Department of the International Monetary Fund (IMF). Azour shared these insights during a briefing.

According to Azeri-Press news agency, Azour noted that while economies directly impacted by the military conflict are under significant pressure, other nations in the Middle East, North Africa, Afghanistan, and Pakistan, along with most countries in the South Caucasus and Central Asia, have shown notable resilience.

Azour emphasized that the region's future economic prospects hinge on the pace of recovery in energy production and international trade, as well as on maintaining macroeconomic stability. He highlighted that oil production has significantly decreased in most oil-exporting countries directly affected by the conflict, and disruptions in maritime transportation and petroleum supply chains have led to increased fuel prices.

Nevertheless, pre-conflict budget surpluses, alternative transport routes, oil production outside the Persian Gulf, and the use of strategic reserves have helped to mitigate economic losses to a greater extent than initially anticipated. However, Azour cautioned that the effectiveness of these mitigating factors is gradually waning. With declining reserves and limited additional production capacity, further disruptions in energy supplies could result in more severe price fluctuations.