IMF: The war in Ukraine is “the most important factor” in the global economic slowdown

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“This week calls for an end to Russia’s war in Ukraine have multiplied,” Nadia Calvino, Spain’s deputy prime minister and chair of the IMF’s International Monetary and Financial Committee (IMFC), said at a press conference on the occasion of annual meeting of the Fund and the World Bank in Washington.

Russia’s invasion of Ukraine is “the most important factor” in the global economic slowdown and instability, the head of one of the International Monetary Fund’s main committees argued on Friday.

“This week calls for an end to Russia’s war in Ukraine have multiplied,” Nadia Calvino, Spain’s deputy prime minister and chair of the IMF’s International Monetary and Financial Committee (IMFC), said at a press conference on the occasion of annual meeting of the Fund and the World Bank in Washington.

“War is the most important factor in slowing growth and increasing inflation, instability, food and energy insecurity and uncertainties,” he listed, describing the pursuit of peace as the key tool of economic policy.

The Commission, of which Russia is a member, failed to issue a final communique after its meeting due to a lack of unanimity. Calvino said Moscow blocked the issuance of a joint communiqué. Instead, a statement from the IMFC presidency was released, saying that the pandemic and the war in Ukraine are weighing on “economic activity.”

On Thursday, finance ministers and central bankers meeting at the G20 in Washington also failed to issue a final communiqué due to Russia’s presence in the discussions. It is the third time in a row that no joint communique has been issued at a meeting of G20 finance ministers.

“Stop the war. Is there a more immediate way to get the economy back on track?” asked IMF Director General Kristalina Georgieva who was present at today’s press conference.

On Tuesday, the IMF revised down its forecasts for the global economy, expecting a recession in Germany and Italy, among others.

RES-EMP

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