The war in Ukraine will have a “severe impact” on the world economy if the conflict escalates, affirmed the International Monetary Fund (IMF) this last Saturday, March 5. In addition, he specified that countries with economic ties with Kyiv and Moscow are exposed to higher risks.
While the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic fallout is already very serious. IMF in a statement after a meeting of its executive board on Friday.
“The current war and the sanctions associated with it will have a severe impact on the global economy if the conflict escalates,” the agency said.
The multilateral entity affirmed that the nations that have economic ties with Russia and Ukraine they are at “special risk” and could be exposed to shortages of goods, as well as disruptions in supply chains.
In fact, this week the energy prices and of the raw Materials usually. Oil ended the week at US$115.68, which added to the inflationary rebound that the world was already experiencing at the end of the COVID-19 pandemic.
“The jump in prices will have effects throughout the world, in particular in low-income households, for whom food and energy expenses represent a larger proportion of their budget than the average”, advanced the International Monetary Fund.
After the start of the Russian invasion, the Ukrainian government asked the IMF for emergency financial aid worth US$1.4 billion and, as detailed on March 5, this issue will be evaluated “at the earliest next week” by the Board of Directors. Governors of the Fund.
Source: Larepublica
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