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IMF alert: War in Ukraine is shaking up global economy

2022-03-06 16:11:02Biznes SHKRUAR NGA REDAKSIA VOX

IMF alert: War in Ukraine is shaking up global economy

The International Monetary Fund warned that the war in Ukraine and sanctions imposed on Russia will have a major negative impact on the global economy.

"The economic consequences are already very serious," the IMF said in a statement.

Food and energy prices have risen in recent days and supply chains have disconnected, driving up inflation worldwide. JPMorgan Chase & Co economists lowered their outlook for global growth this year by about a percentage point and raised their inflation estimate yes by a percentage point.

"If the conflict escalates, the economic damage would be even more devastating. Sanctions on Russia will also have a substantial impact on the global economy and financial markets, with significant spread to other countries" says the IMF, stressing that the most at risk of this are poor and developing countries with unconsolidated economies.

The IMF advises central banks to keep inflation under special supervision, while governments find ways to support poor families through compensation for rising living costs.

Ukraine has requested $1.4 billion in aid, and IMF officials will review the request as early as early next week, according to the statement.


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