[Economics] The IMF warns of a "severe impact" on the world economy due to the war in Ukraine

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Shortages of goods and disruptions in supply chains

The International Monetary Fund (IMF) has announced that the war in Ukraine will have a "severe impact" on the economy and warned that world countries with economic ties to Kiev and Moscow are exposed to greater risks.

"The current war and the sanctions associated with it will have a severe impact on the global economy," the financial organization said in a statement.

The Fund explained that nations with economic ties to Russia and Ukraine are at "special risk" and could be exposed to shortages of goods, as well as disruptions in supply chains.

Those countries, moreover, are the ones that are hosting the largest number of refugees from Ukraine, the IMF said.

 

Requests to the entity
As a result of these pressures, Moldova has already requested an increase and certain changes to the debt program it has with the IMF and Fund staff are currently discussing different options with the Moldovan authorities, the statement detailed.

 

After the start of the Russian invasion, the Ukrainian government asked the IMF for emergency financial aid worth 1,400 million dollars and, as detailed this Saturday, this issue will be evaluated "at the earliest next week" by the Board of Governors of the Background.

The managing director of the institution, Kristalina Georgieva, evaluated Ukraine's request and the possible economic impact of the war during a meeting on Friday.

After months of tensions, Russia invaded Ukraine ten days ago and began bombing major cities, causing more than 2,000 civilian deaths, according to provisional figures from the Ukrainian State Emergency Service, and the flight of more than a million people, according to with the UN Refugee Agency (UNHCR).

 

Link: https://www.eleconomista.es/economia/noticias/11651511/03/22/El-FMI-alerta-de-un-impacto-severo-en-la-economia-mundial-por-la-guerra-de-Ucrania.html