The Iran war has triggered a major global economic shock, with oil prices surging and fertilizer supply chains under strain following disruptions in the Strait of Hormuz. For low- and middle-income countries, the impact is immediate—higher import bills, currency pressures, and tighter financing conditions.
In this episode of the CGD Podcast, I’m joined by Liliana Rojas-Suarez, Director of CGD’s Latin America Initiative, and Catherine Pattillo, a new senior fellow at CGD and former deputy director of the IMF’s African Department, to discuss what this means for low- and middle-income countries.
We examine how this moment compares to recent shocks like COVID-19 and the war in Ukraine, how governments are responding—from fuel subsidies to rationing and currency interventions—and where the pressure is most acute, including in import-dependent economies in Southeast Asia and across sub-Saharan Africa.
