An escalation of conflict in Ukraine would have “catastrophic” economic consequences globally, the International Monetary Fund warned today.
In addition to the war itself, the sanctions imposed on Russia they will also have a “substantial impact on the global economy and financial markets, with side effects for other countries,” the Fund notes. “The economic consequences are already very serious,” he added.
Rising energy prices and commodities in general, with oil now approaching $ 120 a barrel, are exacerbating the inflationary pressures facing the world as it emerges from the pandemic.
“Rising prices will have consequences for the whole world, especially for the poorest households, for which energy and food expenditures account for the largest share” of their budget.
As for Ukraine itself, it is “already clear” that the country is facing significantly increased costs which are also associated with the reconstruction of buildings and infrastructure that have been destroyed or damaged.
The IMF noted that the urgent financial assistance requested by Ukraine since February 25 amounts to $ 1.4 billion. This request may be formally submitted to the Fund’s board next week.
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