RUSSIA’S WAR IN UKRAINE MAY ‘FUNDAMENTALLY ALTER’ GLOBAL ECONOMIC, POLITICAL ORDER, SAYS IMF

Wed 16 March 2022:

Russia’s invasion of Ukraine will affect the entire global economy by slowing growth and jacking up inflation, and could fundamentally reshape the global economic order in the longer term, the International Monetary Fund (IMF) said on Tuesday.

Beyond the human suffering and historic refugee flows, the war is boosting prices for food and energy, fuelling inflation and eroding the value of incomes, while disrupting trade, supply chains and remittances in countries neighbouring Ukraine, the IMF said in a post on its website.

It is also eroding business confidence and triggering uncertainty among investors that will depress asset prices, tighten financial conditions and could trigger capital outflows from emerging markets, it said.

“The conflict is a major blow to the global economy that will hurt growth and raise prices,” the IMF said.

IMF officials has already said they expect to lower the Fund’s previous forecast for 4.4% global economic growth in 2022. In Tuesday’s post, they suggested their regional growth forecasts would also be likely be revised downward.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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