Large economic institutions, such as the International Monetary Fund (IMF), the European Bank for Reconstruction and Development (EBRD) and the World Bank, declared themselves “horrified and deeply concerned” for the Russian invasion of Ukraine and warned of the “Wide global economic consequences”.
In a statement, the signatory organizations, among which is also the European Investment Bank (EIB) warn that in addition to the “devastating humanitarian catastrophe in Ukraine, war disrupts livelihoods in region and beyond”.
According to the institutions, this will reduce supplies of energy, food, increase prices and poverty and “will harm the planetary post-pandemic recovery”.
“The global economy will suffer from slower growth, trade disruptions, and the poorest and most vulnerable will be hit the hardest”, the signatory organizations warned.
Ukraine’s neighboring countries, in particular, will suffer from disruptions in trade, in the supply chain and will have to deal with “waves of refugees”.
Financial markets will also be affected, with uncertainty that will affect asset prices, tighten financial conditions and could even “generate capital flows out of emerging markets”.
The signatories recall the actions that have already been taken: a 2 billion euro ($2.2 billion) aid package from the EBRD, mainly covering energy and nuclear security; a provision of 668 million euros (US$ 737 million) by the EIB; US$1.4 billion of emergency assistance from the IMF and US$925 million from the World Bank.
Source: Gestion
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