The World Bank's chief economist has warned that the ongoing conflict in the Middle East could push millions more towards hunger due to its economic fallout.
According to Indermit Gill, about 300 million people already suffer from acute food insecurity, and this number could increase by 20% very quickly.
The blocking of the Strait of Hormuz has led to soaring fertilizer prices, which may encourage countries to halt food exports and hoard more food, further driving up food prices.
Gill warned that countries with fragile governments or at war are most exposed to the situation, and if it's not resolved soon, 'hunger will start to stalk these countries massively.'
The shortage of petrochemicals is currently being felt most in Asia, but Gill expects the crisis to spread to Africa as it drags on.
He also predicted that global growth could be cut by as much as 40% on a yearly basis, and inflation could rise from 3% to 4.7% this year, posing a 'double whammy' for poor countries' debt sustainability.
