BAKU, Azerbaijan, March 16
Trend:
Market volatility resulting from rising global tensions is further complicating the economic recovery for many economies, especially oil and gas providers such as Kazakhstan, the World Economic Forum (WEF) told Trend.
WEF noted that higher energy prices may translate to more revenues in the short-term, but sudden drops are also likely, making it difficult for economies such as Kazakhstan to maintain stable public finances.
“More importantly, higher energy prices are transferred to the most vulnerable households in the form of inflation, a critical risk to the global economy identified in our Global Risks Report,” the WEF said.
The WEF added that January events in Kazakhstan are one manifestation of a worldwide challenge that the Global Risks Report highlights: to different extents, all countries are facing the defining challenge of restoring trust, jobs and cohesion to enable long-term prosperity.
“At a time when an uneven recovery threatens to further fracture societies and split the world into divergent trajectories, the international community must work together to ensure stable supplies and prices for critical commodities through the recovery from COVID-19,” the WEF noted.
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