IMF chief: Ukraine war threatens global economy and inflation

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A clear warning to governments that o war in Ukraine weakens economic prospects for most countries in the world, said the head of the IMF, Kristalina Georgievacharacterizing him inflation “A clear and present danger” to the global economy.

The director general of the IMF stressed that the Russian invasion of Ukraine has contributed to the economic degradation of 143 countries, although most of them will continue to grow. The war has disrupted world trade in energy and cereals and this has resulted in food shortages threatening countries in Africa and the Middle East.

Her statements Georgieva in view of the IMF and World Bank spring meeting next week in Washington.

She added that the unexpectedly strong recovery from the pandemic has taken businesses by surprise, leaving factories, ports and shipyards unable to meet strong demand and raising prices. Inflation, forcing central banks to raise interest rates, is tantamount to a “massive setback for the global recovery,” Georgieva said.

He also warned of “fragmentation of the world economy into geopolitical blocs” with the West imposing extensive sanctions on Russia and China, voicing support for the authoritarian Russian regime of President Vladimir Putin.

“In a world where war in Europe is starving in Africa, where a pandemic can go around the globe for days and resonate for years, where gas emissions can rise almost everywhere, the threat of “Our collective well-being cannot be underestimated,” Georgieva said.

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