Eight weeks after the United States launched war against Iran, economic impacts are rapidly spreading globally, with factories shutting down, flights suspended, and energy rationing occurring across multiple countries in Asia and Europe, while the U.S. itself remains relatively less affected. Reports indicate that textile factories in India and Bangladesh have closed due to rising costs and supply pressures; partial flight suspensions have occurred in Ireland, Poland, and Germany; Vietnam, South Korea, and Thailand have been forced to impose energy usage restrictions. Meanwhile, the U.S. economy continues to maintain stable growth with low unemployment, and its performance is expected to remain stronger than that of most developed economies. Affected by missile attacks damaging gas fields and disruptions to shipping through the Strait of Hormuz, the UAE has even sought financial assistance from the United States. The greatest economic pain from this war is expected to fall on poorer nations. Skyrocketing fuel and fertilizer prices will drive up food prices later this year, while governments with limited fiscal capacity struggle to subsidize their populations, and tighter financing conditions will increase their borrowing costs. The International Monetary Fund has warned that risks to food security in Africa are rising. The United Nations Development Programme stated that millions across the Asia-Pacific region could be pushed into poverty due to the conflict. Chicago University economist Raghuram Rajan said many Asian countries are already facing fuel shortages, and if the war continues, supply pressures will intensify further, meaning the true economic impacts on many economies are only just beginning to emerge.
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Original article: toutiao.com/article/1863690029051914/
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