"As uncertainty rises, investors are shifting away from riskier assets, selling stocks, bonds and currencies in developing countries. Borrowing costs have already risen in Africa, Latin America and the Caribbean, developing Asian nations, the UK and elsewhere."
"In some regions, the effects are already acute. Southeast Asia faces fuel shortages and rationing that threaten industrial activity, with countries like Bangladesh limiting air-conditioning and closing universities."
"India is capping industrial gas use; the Philippines declared a national energy emergency; Korea is asking car owners to avoid driving one day per week. Many nations are cutting fuel taxes and boosting subsidies, which can strain budgets."
The UN forecasts a decline in global economic growth from 2.9% in 2025 to 2.6% this year, influenced by the war's effects. Developing nations are particularly affected, with rising borrowing costs and disrupted supply chains. Global merchandise trade growth is projected to drop from 4.7% last year to between 1.5% and 2.5% in 2026. Southeast Asia is experiencing acute fuel shortages, prompting rationing and industrial activity threats. Countries are implementing emergency measures, including fuel rationing and tax cuts, which may strain budgets.
Read at Axios
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