Economist: "The World Economy Faces Very Large Shocks" 0 18

"If we look at what is happening within Latvia, everything is more or less in order, but of course, we depend on what is happening in the rest of the world. Everything there is currently unpredictable. The situation with the legendary Persian Gulf and the Strait of Hormuz is somewhat better now, oil prices have slightly decreased compared to the peak. But fluctuations occur every day," noted economist Peteris Strautins in an interview with TV-3. "It is obvious that the world is running out of oil and its products. The last ships that left the most important oil production site in the world at the end of February have already reached the ports. Physical reserves are declining. [...] If the geopolitical and geographically political situation is not resolved, it is clear that the world economy is threatened by very large shocks." Strautins explained that the situation could affect both energy resource prices and have an adverse effect on the agricultural sector and technology production. The economist also noted that with fuel prices, "any wonders are still possible." "What has happened now is really nothing special. Fuel prices are high, but if we compare incomes in Latvia with fuel prices, then purchasing power is at the level of 2019-2021," added the economist.