IMF Bell: Escalation of the war in Ukraine would have catastrophic consequences

An escalation of the conflict in Ukraine would have “catastrophic” global economic consequences, the International Monetary Fund has warned.

In addition to the war itself, the sanctions imposed on Russia will also have a “substantial impact on the world economy and financial markets, with knock-on effects for other countries,” the Fund said. “The economic consequences are already very serious,” he added.

IMF “bell” due to events in Ukraine

Rising energy and commodity prices in general, with oil now approaching $120 a barrel, is exacerbating inflationary pressures facing the world as it emerges from the pandemic.

“Rising prices will have repercussions for everyone, especially the poorest households, for whom spending on energy and food makes up the largest part of their budgets.”

As for Ukraine itself, “it is already clear” that the country faces significantly higher costs that are also associated with the reconstruction of buildings and infrastructure that have been destroyed or damaged.

The IMF noted that the urgent financial aid requested by Ukraine since February 25 amounts to 1.4 billion dollars. This request can be formally submitted to the Fund’s board next week.

source: iefi merida