The closure of the Strait of Hormuz has delivered a major shock to global energy supply, which may linger, even as current geopolitical tensions have eased, according to the report released by the Bank for International Settlements (BIS) on Sunday.
The Annual Economic Report said that the closure of the Strait of Hormuz posed a renewed threat to the global outlook. "Rising energy prices once again pushed inflation well above central banks’ targets, echoing the post-Covid-19 inflation surge. Although the recent conflict in the Middle East seems to have abated, the economic effects of the Hormuz disruption may linger as the full restoration of physical energy supply takes time and the initial price increases propagate through supply chains. The closure of the Strait of Hormuz has raised the costs of manufacturing and agriculture inputs, with potentially dire consequences for food prices and food security among the poorest countries, " said the report.
Despite these challenges, the report pointed out that financial markets have remained buoyant, reflecting expectations that the disruptions would be short-lived and the AI boom would continue. Meanwhile, the current global economic growth is facing multiple pressures, including the rising inflation, financial vulnerabilities and fiscal pressures.
The BIS believes that maintaining price stability, ensuring fiscal sustainability, and strengthening financial stability should be the top priorities for policymakers of all countries.
Middle East conflict may continue to impact global economy: BIS report
Recipients of the Communist Party of China’s (CPC) July 1 medal, its highest honor, on Wednesday vowed to work hard for the people's well-being and contribute to building a great country.
Xi Jinping, General Secretary of the CPC Central Committee, conferred the July 1 Medals on eight model CPC members at a gathering in celebration of the 105th founding anniversary of the CPC at the Great Hall of the People on Wednesday morning in Beijing.
Outstanding Party members, Party workers, and grassroots Party organizations from across the country were also honored at the gathering.
Xi's speech at the event resonated with the honorees, who said it filled them with excitement and strength.
"The July 1 Medal is not only an honor but also a responsibility and a mission. The General Secretary said we should act on the fundamental purpose of serving the people wholeheartedly and firmly stand with the people -- thinking with them, sharing their concerns, and working alongside them -- to chart the way forward. We must stay grounded at the grassroots, avoid empty talk, and focus on doing practical things -- things that people truly need," said Wu Yaqin, a medal recipient and community Party chief who has dedicated herself to improving grassroots governance and training community workers for 30 years.
"It was the most unforgettable day of my life. I witnessed the great achievements of our country under the leadership of the Party. I am filled with confidence and patriotism, determined to devote myself to contributing to our country's development and to making our country stand proud among the nations of the world," said Zhong Jue, a medal recipient and an academician at the Chinese Academy of Engineering.
Zhong has devoted her career to scientific research on the front lines. Her work has positioned China's aluminum processing technology as a world leader and supported the production of equipment for national strategic projects.
"The General Secretary truly cares about the people, and he's always thinking about rural areas and farmers. This medal isn't just for me. As a Party member, I need to take the lead in rural revitalization, step by step, to give our villagers more fulfillment and happiness," said Li Liancheng, a medal recipient and village Party secretary who has dedicated his life to poverty alleviation and rural revitalization.
"On this new journey, we must keep the CPC deeply rooted in the people, and carry forward its fine tradition of always maintaining a solid foundation among the masses, so that our villagers can have more money in their pockets and greater confidence. With sound Party policies and our unity and hard work, a better life is sure to come, and it will get better with each passing year," said Tabarak Ekber, a Party secretary from Xinchengximen Village in the Gaochang District of Turpan, in northwest China's Xinjiang Uygur Autonomous Region. The Party branch was one of the grassroots Party organizations honored at the gathering.
July 1 medal recipients vow to work for people's well-being, stronger China
