The IMF warns of a “significant” economic risk due to the war in Ukraine

  • The monetary authority warns that the attack deployed by Russia will affect the post-pandemic world economic recovery

The director of International Monetary Fund (IMF), Kristalina Georgievwarned this Thursday that the war in Ukraine will have repercussions on the Economic recovery world.

After the invasion of Ukraine by RussiaGeorgieva said on Twitter that she was “deeply concerned” and warned that this “adds a economic risk significant for the region and the world”. “(From the IMF) we are evaluating the implications and stand ready to support our members as needed.”

The Russian President, Vladimir Putinbegan the invasion of Ukraine this Thursday morning, with bombings and ground incursions by troops in various parts of the country, including near the capital, Kyiv.

The attacks have already caused dozens of dead in just a few hours and a barrage of international condemnations and reactions. After the Russian advance, world markets felt the blow: stock markets fell and commodity prices rose.

There are several emergency meetings planned: the G7 met by videoconference and agreed to “severe and coordinated” economic sanctions; the 27 countries of the European Union (EU) will do so in the afternoon at a summit in Brussels; while the NATO He called a meeting for Friday. The president of the United States, Joe Bidenwill address the nation this afternoon, Spanish time.

The ECB studies the impact of the war

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For his part, the European Central Bank (ECB) is carefully monitoring the situation and the implications of Russia’s attack on Ukraine. “The ECB is closely monitoring the implications of the situation in Ukraine and will make a comprehensive assessment of the economic outlook at its March meeting,” a spokesperson for the monetary authority told Europa Press.

The assessment for the March meeting was already scheduled, since at said meeting the ECB must present its new macroeconomic perspectives. Several members of the Governing Council have warned in recent weeks that if the inflation outlook does not improve by then, they would advocate the normalization of interest rates as of the end of 2022. The news reported by the ECB this Thursday is that the evaluation of the economic forecasts for March will take into account “the recent developments in the geopolitical area”.

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