Conflict in the Middle East threatens global economy, and Kosovo will have consequences

Beyond the risk of global security, recent developments are increasingly seen as a serious threat to economic stability, especially because of the key role this region has in the world's energy supply.

Economy experts and business representatives warn that the world may be on the verge of a new economic crisis, with consequences similar to those of previous global crises.

In this context, Kosovo is seen as especially exposed to these developments, due to its dependence on imports, lack of strategic reserves and domestic political instability.

The economy recognisers estimate that the impact of the global crisis would be reflected directly on the cost of citizens' living and on local business difficulties, increasing concerns about the country's economic stability in the coming months.

The chairman of the Kosovo Economic House, Lulzim Rafuna, has warned that the conflict in the Middle East could have a direct and serious impact on Kosovo's economy, through rising prices and inflation.

Its <x0 minimum is economic because since the Hurmuz Strait exceeds 20% of world oil”, he said.

According to Rafuna, the main impact of this conflict is economic, especially if Hormuz Strait is blocked, through which more than 20 percent of world oil is passed.

This undoubtedly brings up oil price growth, electricity and inflation growth, and we as a new state can have it”, Rafuna for Frontonline, broadcast Periscope.

He has clarified that this conflict affects almost all prices, as increasing the cost of energy and oil derivatives is reflected in the chain of production and supply.

When the price of electricity and oil increases, all products rise because these increases are reflected in the world market as well, because of supply disorder and demand”, he noted.

The former head of the Kosovo Economic Ode, Safet Gerjaliu, has estimated that the escalation of the conflict in the Middle East is pushing the global economy towards a major new crisis, while Kosovo is facing this situation under adverse political and economic circumstances.

According to Gerxhaliu, many international experts have already warned that this year could turn into an economic crisis of size 2008, stressing that recent developments have radically changed global reality.

He has criticised the domestic political situation in Kosovo, stressing that the country is expecting this crisis without institutional stability.

While other countries are struggling to minimize the problems and effects of this global crisis, we in Kosovo have political competition and lack of political stability. This war and this crisis finds Kosovo at a very inconsistent moment”, Gerjaliu has said.

Speaking of global energy and trade, it has highlighted the strategic importance of the Hormuz Strait, which it has described as the main oil supply artery for developed economies.

The Hormuz shell is the main artery of developed countries and the most important node for global oil supply. Only yesterday have some 150 ships been blocked, while today the number has gone to 240 ships blocked, and that is a lot about the seriousness of the” situation, he said.

According to Gerjaliu, these developments will be reflected directly in the rising price of oil and the worsening economic conditions for small countries.

Kosovo Business Alliance Chairman Agim Sahini has warned of the economic consequences that could bring to the escalation of the conflict in the Middle East, stressing that Kosovo is particularly vulnerable because of the lack of state energy reserves.

Sahin said the current situation in the Middle East is corrupting markets worldwide, while the impact in Kosovo is expected to be even more sensitive.

Also, Kosovo Business League representative (LBK) Bessart Dresey has estimated that the tense situation in the Middle East poses a serious global concern, with consequences stretching beyond the political and security aspect, affecting the international economy, including Kosovo.

Dressaj has warned of the instability of the supply chain, which can affect both prices and goods delivery terms.

In this context, he has stressed that prolonged global uncertainty could even lead to a decline in investor confidence, making it more difficult to attract new investments to the country. /Periscope/