Scope for fiscal stimulus is limited amid energy crisis

The global economy is facing a serious, but not unprecedented, energy crisis. The transportation of oil and natural gas has been negatively affected, mainly due to the closure of the Strait of Hormuz, while production facilities have also been hit, with possible long-term repercussions. The ongoing war in Ukraine is an additional aggravating factor.

Despite the pressure, the global economy is relatively resilient due to a decrease in dependence on oil production, as well as the availability of...