Overview:

As economic recovery efforts are ongoing and the world continues to struggle with Covid-19 and the regular advent of new mutations, the global economy is shaken by another exogenous shock – the East European crisis. The direct humanitarian aspects in Ukraine and Russia were the primary concern at the onset of the crisis, prompting economic sanctions from the West. However, as the situation escalated, it has been made clear that the impact of the crisis reaches far beyond the borders of the countries directly involved. Global markets were rattled with surges in commodity prices, prompting energy and food security threats, especially in vulnerable countries. If left unaddressed, this is expected to leave a long-lasting global economic impact.

Despite not being direct parties to the crisis, Islamic Development Bank (IsDB) member countries (MCs) are not immune to these shocks. In this context, the IsDB will organize a side event during the 2022 IsDB Group Annual Meeting in Egypt. To enrich the body of knowledge, the International Monetary Fund (IMF) is invited to share their views on the Global Economic Outlook, with a particular focus on IsDB MCs.

Key issues to be addressed:

1.       What are the implications of the East European crisis on the global economy and IsDB MCs?

2.       How will the wide-ranging sanctions and counter-sanctions affect the international financial system and IsDB MCs?

3.       How are IsDB Member Countries affected by the crisis? What are the main transmission mechanisms?

4.       How could IsDB MCs cope with potential critical challenges in food security, inflation, remittances and tourism, and general economic growth and recovery amid the COVID-19 pandemic?