IMF: The impact of the war on the global economy will be heavy

In the statement made by the IMF, it was stated that the executive board of the fund convened under the chairmanship of Kristalina Georgieva and discussed possible rapid financial assistance for the countries affected by the economic effects of the war in Ukraine. Pointing out that the war in Ukraine caused great damage to the physical infrastructure of the country, it was stated that it caused a wave of more than 1 million refugees to neighboring countries and the announcement of unprecedented investments in Russia. The statement included, "While the situation is highly volatile and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious.”

"If the conflict escalates, the economic damage will be even more devastating"

Pointing out that the prices of energy and commodities, including wheat and other grains, have risen, it was stated that this contributed to the inflationary pressures caused by supply chain disruptions and the recovery from the Covid-19 outbreak. Emphasizing that price shocks will affect the whole world, the statement said, "If the conflict escalates, the economic damage will be even more devastating." In the IMF 's statement, it was noted that the sanctions against Russia would have significant effects on the global economy and financial markets. In the statement, which stated that the crisis had a negative shock on both inflation and economic activity in many countries, it was emphasized that monetary policy authorities would need to carefully monitor the transition of rising international prices to domestic inflation in order to adjust appropriate responses.

Ukraine's financing request will be evaluated next week at the earliest

The statement said that fiscal policy will need to support the most vulnerable households to help offset rising costs of living, and the crisis has further complicated the policy environment, the statement said. The statement included, "Although it is very difficult to fully assess its financing needs at this stage, it is already clear that Ukraine will face serious recovery and rebuilding costs." In the statement, it was stated that Ukraine requested an emergency loan of $1.4 billion under the IMF's Rapid Financing Instrument, and this request is expected to be forwarded to the executive board for consideration at the earliest next week.