The International Monetary Fund (IMF) warns that the Russian -Ukrainian war and the sanctions imposed on Moscow will have a severe impact on the global economy.
According to a statement issued on Saturday, the IMF said although it was still too early to make expectations due to uncertainties, the impact on the economy was already very serious.
The escalation of the Ukraine-Russia conflict has driven a sharp spike in global energy and food prices in recent times, adding to inflationary speculations that are now still unstoppable in the wake of the world’s recovery from the Covid-19 pandemic.
Price shocks will affect around the world, especially on poor households, where food and fuel are considered a higher share of spending to bear, according to the IMF.
The IMF added that the impact on the economy would be even more devastating if the conflict escalated. Sanctions on Russia will also have a major impact on the global economy and financial markets which will also be significantly felt by other countries.
The IMF also stressed that central banks need to closely monitor rising global and national inflation to set appropriate responses to address them.
In addition, the government is looking for ways to support the most vulnerable households and help offset the rising cost of living.
Meanwhile, to support Ukraine with emergency funding, the IMF is ready to approve an aid package of $ 1.4 billion as soon as this week.
