The international lender said in a statement that the conflict in Ukraine was already pushing up energy and grain prices and had sent more than 1 million refugees to neighboring countries, at the same time as launching unprecedented sanctions on Russia.
“Although the situation is still very fluid and the outlook for uncertainty is uncertain, the economic consequences are already very serious,” the International Monetary Fund said in a statement following a meeting of Kristalina Georgieva, the managing director.
“Continued wars and sanctions will also have a serious impact on the world economy,” he warned, noting that the crisis was a blow to inflation and economic activity at a time when inflationary pressures were already high.
It said that price shocks would be felt around the world and that the government should provide financial support to poor households as food and fuel were a higher proportion of expenditure, adding that economic damage would increase if the war intensified.
Extensive sanctions imposed on Russia by the United States, European countries, and others would also “have a significant impact on the world economy and financial markets, with a significant impact on other countries.”
IMPACT ON UKRAINE, MOLDAVA
In addition to the casualties, Ukraine suffered heavy economic losses, ports and airports were closed and damaged, and many roads and bridges were damaged or destroyed.
“While it is very difficult to accurately assess the need for funding at this stage, it is already clear that Ukraine will face significant recovery and restoration costs,” it said.
The government was expected to consider Ukraine’s request for $ 1.4 billion in emergency funding next week. Ukraine also has $ 2.2 billion available through June under current pending arrangements, the IMF said last week.
Moldova and other countries with close economic ties with Ukraine and Russia were at “particular risk” of supply shortages and disruptions, the IMF said.
It said IMF staff were actively discussing funding options with Moldova, which has called for an increase and restructuring of the IMF’s current $ 558 million loan program to meet the costs of the current crisis.
International Monetary Fund says Ukraine’s conflict will have ‘serious impact’ on world economy – SABC News
Source link International Monetary Fund says Ukraine’s conflict will have ‘serious impact’ on world economy – SABC News