Rising conflict in the Middle East is rattling global markets and casting doubt on economic recovery plans worldwide.
The South African Chamber of Commerce and Industry has warned that ongoing conflict in the Middle East is worsening instability in global financial markets and threatening economic recovery prospects in South Africa and beyond.
In a statement, SACCI CEO Alan Mukoki said disruptions to global supply routes and supply chains are already affecting inflation, interest rates, exchange rates, commodity prices, and overall economic growth.
He cautioned that the situation “does not bode well” for South Africa’s recovery outlook, stressing that continued instability could further weaken already fragile economies.
Mukoki called for immediate restraint from parties involved and urged a ceasefire, adding that global multilateral institutions must step up efforts to resolve the conflict.
He also appealed for diplomatic intervention from the South African government to help push for peace and protect global economic stability, warning that damage to critical infrastructure such as energy and water systems could have far-reaching consequences.
The warning comes amid heightened global tensions that have already disrupted shipping routes and pushed oil prices higher.
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