The International Monetary Fund believes the war between Russia and Ukraine is unlikely to have a massive impact on the global economy.
Kristalina Georgieva, the managing director of the IMF, told CBS the situation in Ukraine was unlikely to cause a global financial crisis. While the war in Ukraine is currently affecting the economy of many countries, it will hardly create significant perturbations around the world. Even if Russia gets fully disconnected from the global economy, it would not disrupt the global economy at large
Earlier, Georgieva stated that the IMF would lower its global growth forecast for 2022 due to the war. She noted that countries which had failed to fully recover from the pandemic would be the most affected, particularly Russia.
In an interview with CBS, the managing director of the IMF pointed out that the situation in Eastern Europe would push up energy, fertilizer, and metal prices, as well as accelerate inflation in the US and developing countries, such as Mexico and Brazil.
The Russian economy is likely to take the brunt of the war’s impact. According to an outlook by the Russian central bank, the country’s GDP could shrink by 8% over the year. The CPI could jump by 20% according to the consensus estimate.
