The United Nations reports that despite the resumption of shipping through the Strait of Hormuz, numerous nations continue to endure long-term economic consequences from the previous maritime blockage. A recent analysis from UN Trade and Development highlights that 61 of the most vulnerable countries, including various small island developing states and least developed nations, face a double threat of rising food and energy costs due to their heavy dependence on imports.
Data covering the 2022-2024 period reveals that for these specific economies, net imports of oil, petroleum products, and grains accounted for between 2.4% and 25% of their total GDP. Nations identified in the report include Afghanistan, Fiji, Madagascar, and Yemen, among others. While the reopening of the route is a positive development for international trade, Secretary-General António Guterres emphasized that the economic damage will persist for months, disproportionately affecting developing regions.
The report warns that spikes in oil and fertilizer prices could trigger chronic inflation, making basic necessities and healthcare increasingly unaffordable for households. Furthermore, these nations struggle with limited public funds, high debt levels, and declining international aid, which hinders their ability to stabilize their economies. UNCTAD advocates for global cooperation to help these vulnerable states diversify their trade sources and strengthen their financial resilience against future market disruptions.
