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The International Monetary Fund (IMF) considered the situation in Ukraine a serious blow to the global economy, which will harm its growth and lead to higher prices around the world. This, according to TASS, is stated in an article published on the foundation’s blog. One of its authors is Alfred Kammer, Director of the IMF’s European Department.
The material indicated that the conflict is a serious blow to the global economy, which will hurt growth and lead to higher prices. At the same time, the authors note that some of the consequences may not be fully manifested for many years, but already today there are clear signs that the military conflict and the resulting surge in prices for essential goods will make it difficult to find a balance between containing inflation and supporting economic recovery after pandemics.
The article also says that the International Monetary Fund intends to revise its forecasts for global economic growth downward.
Experts note that due to what is happening in Ukraine, the increase in food and energy prices will lead to a further increase in inflation, and therefore to a decrease in income and demand. In addition, neighboring countries will experience problems in the area of ”trade, supply chains and remittances, as well as the historical influx of refugees,” the article emphasizes.
Also, the decline in business confidence and the growth of investor uncertainty will put pressure on asset prices, worsening the financial situation and, possibly, stimulating the outflow of capital from emerging markets. In turn, countries dependent on oil imports may face an increase in budget and trade deficits and increased inflationary pressure, experts believe.
As the article notes, the sharp rise in food and fuel prices could increase the risk of unrest in some regions, from sub-Saharan Africa and Latin America to the Caucasus and Central Asia.
According to the fund’s estimates, Russia’s military operation in Ukraine in the long term could fundamentally change the world economic and geopolitical order.
Source: Rosbalt
Tristin is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
