The International Monetary Fund (IMF) warned that war in Ukraine and sanctions on Russia will have a substantial impact on the global economy and financial markets, with significant spillovers to other countries.
The warning came during the IMF Executive Board meeting chaired by Managing Director Kristalina Georgieva on the economic impact of the war in Ukraine, and on possible fast-tracked financial assistance for affected countries, the IMF said in a press release.
While the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious.
Energy and commodity prices—including wheat and other grains—have surged, adding to inflationary pressures from supply chain disruptions and the rebound from the Covid‑19 pandemic.
Price shocks will have an impact worldwide, especially on poor households for whom food and fuel are a higher proportion of expenses. Should the conflict escalate, the economic damage would be all the more devastating.
Ukraine has already requested emergency financing of $1.4 billion under the IMF’s Rapid Financing Instrument.
Staff anticipates bringing this request to the Executive Board for consideration as early as next week.
