SINGAPORE, May 1 — Singaporean Prime Minister Lawrence Wong warned on Friday that supply disruptions stemming from the Middle East crisis are likely to persist and could worsen in the months ahead, raising the risk that some economies slip into recession.
“Globally, inflation will rise, spreading from energy to food and then other essentials.
Some economies may well slip into recession, and Singapore will feel the impact directly,” Wong said in a May Day Rally speech.
Even if the Strait of Hormuz reopens, Wong said “we should not expect this crisis to be over anytime soon,” citing damage to ports and energy infrastructure, the need to clear shipping lanes of mines, and the time required to restore confidence.
“It will take months at least before the situation stabilizes,” he said. The strait has been closed for more than two months, with effects already seen in higher prices and tightening supply, Wong said.
Asia has been particularly affected due to its heavy reliance on energy and other critical imports from the Gulf, he added.
“Some countries in our region are already facing fuel shortages,” he said, noting that airlines have cut flights and factories are reporting delays.
He warned the disruptions “will not stop at energy,” with fertilizer, food and other essential inputs likely to be affected next.
“We can expect shortages in more items to emerge,” he said.
Wong also said Singapore’s economic growth will slow this year while inflation rises, placing “real pressure on businesses, workers and households.” (Namibia Daily News/Xinhua)
