Please ensure Javascript is enabled for purposes of website accessibility
IMF Chief: Ukraine War and Inflation Threaten Global Economy
gvw_ap_news
By Associated Press
Published 3 years ago on
April 14, 2022

Share

 

The head of the International Monetary Fund warned Thursday that Russia’s war against Ukraine was weakening the economic prospects for most of the world’s countries and called high inflation “a clear and present danger’’ to the global economy.

IMF Managing Director Kristalina Georgieva said the consequences of Russia’s invasion were contributing to economic downgrades for 143 countries, although most of them should continue to grow. The war has disrupted global trade in energy and grain and is threatening to cause food shortages in Africa and Middle East.

Inflation ‘a Massive Setback’

Georgieva made her comments in a speech on the eve of next week’s spring meetings of the IMF and the World Bank in Washington.

An unexpectedly strong recovery from 2020’s pandemic recession has caught businesses by surprise, leaving factories, ports and freight yards unable to keep up with robust customer demand and forcing prices higher.

Chronically high inflation, which is forcing the world’s central banks to raise interest rates and likely slow economic growth in the process, amounts to “a massive setback for the global recovery,’’ Georgieva said.

Georgieva also warned of “the fragmentation of the world economy into geopolitical blocs,” with the West imposing far-reaching sanctions on Russia and China expressing support for the autocratic Russian regime of President Vladimir Putin.

“In a world where war in Europe creates hunger in Africa; where a pandemic can circle the globe in days and reverberate for years; where emissions anywhere mean rising sea levels almost everywhere — the threat to our collective prosperity from a breakdown in global cooperation cannot be overstated,” Georgieva said.

Grain and Corn Supplies Running Low

Before the war, Russia and Ukraine had supplied 28% of global wheat exports. And Russia and Belarus accounted for 40% of exports of the fertilizer potash.

“Now,’’ Georgieva said, “grain and corn prices are soaring, and leaders across Africa and the Middle East are telling me that supplies are running low. Food insecurity is a grave concern.

“We must act now with a multilateral initiative to bolster food security. The alternative is dire: More hunger, more poverty and more social unrest — especially for countries that have struggled to escape fragility and conflict for many years.’’

Georgieva called on the world to support the Ukrainians and noted that the IMF had delivered $1.4 billion in emergency financing to help Ukraine meet its immediate spending needs. The IMF is also offering assistance to Ukraine’s neighbors, including Moldova, which has accepted more than 400,000 war refugees.

RELATED TOPICS:

DON'T MISS

Rural California, Reliant on the Trump Administration for Jobs, Braces for Cuts

DON'T MISS

Wired Wednesday: CEMEX’s New Mining Plan for the San Joaquin River

DON'T MISS

Trump Fires NSC Officials a Day After Far-Right Activist Raises Concerns to Him

DON'T MISS

China Halts Approvals for New US Investment Projects

DON'T MISS

Measles Spreads to Central Texas; 5 States Have Active Outbreaks

DON'T MISS

Trump Tariff Fears Erase $2 Trillion From US Stocks

DON'T MISS

Startup Offers Controversial Microplastic Blood Cleansing Treatment

DON'T MISS

Senate Confirms Mehmet Oz to Take Lead of Medicare and Medicaid Agency

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Pence Will Receive the Profile in Courage Award From the JFK Library for His Actions on Jan. 6

UP NEXT

China Halts Approvals for New US Investment Projects

UP NEXT

Trump Tariff Fears Erase $2 Trillion From US Stocks

UP NEXT

President Trump’s Tariffs Could Be the Political Tipping Point

UP NEXT

Protests Planned All Over the World Aimed at Donald Trump and Elon Musk

UP NEXT

Israeli Strikes on Gaza Overnight Leaves More Than 50 Palestinians Dead

UP NEXT

Hungary to Exit ICC as Netanyahu Visits Amid Arrest Warrant Dispute

UP NEXT

Rubio Visits NATO Amid European Alarm Over Trump’s Agenda

UP NEXT

Dow Drops 1,200 as US Stock Market Leads a Worldwide Sell-off Following Trump’s Tariff Shock

UP NEXT

Trump Announces Sweeping New Tariffs to Promote US Manufacturing, Risking Inflation and Trade Wars

UP NEXT

Israel’s Operations in Gaza Expands to Seize ‘Large Areas.’ Palestinians Say Dozens Killed

China Halts Approvals for New US Investment Projects

15 hours ago

Measles Spreads to Central Texas; 5 States Have Active Outbreaks

16 hours ago

Trump Tariff Fears Erase $2 Trillion From US Stocks

16 hours ago

Startup Offers Controversial Microplastic Blood Cleansing Treatment

16 hours ago

Senate Confirms Mehmet Oz to Take Lead of Medicare and Medicaid Agency

17 hours ago

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

19 hours ago

Pence Will Receive the Profile in Courage Award From the JFK Library for His Actions on Jan. 6

19 hours ago

Politics Turns Ugly for a Conservative Running for Fresno State Student Body President

19 hours ago

Pentagon’s Watchdog to Review Hegseth’s Use of Signal App to Convey Plans for Houthi Strike

19 hours ago

President Trump’s Tariffs Could Be the Political Tipping Point

20 hours ago

Rural California, Reliant on the Trump Administration for Jobs, Braces for Cuts

This story was originally published by CalMatters. Sign up for their newsletters. Far from the halls of power in Washington, the forested ha...

59 minutes ago

59 minutes ago

Rural California, Reliant on the Trump Administration for Jobs, Braces for Cuts

14 hours ago

Wired Wednesday: CEMEX’s New Mining Plan for the San Joaquin River

President Donald Trump speaks during an event to announce new tariffs in the Rose Garden at the White House, Wednesday, April 2, 2025, in Washington. (AP/Mark Schiefelbein)
14 hours ago

Trump Fires NSC Officials a Day After Far-Right Activist Raises Concerns to Him

15 hours ago

China Halts Approvals for New US Investment Projects

16 hours ago

Measles Spreads to Central Texas; 5 States Have Active Outbreaks

16 hours ago

Trump Tariff Fears Erase $2 Trillion From US Stocks

16 hours ago

Startup Offers Controversial Microplastic Blood Cleansing Treatment

Dr. Mehmet Oz, President Donald Trump's pick to lead the Centers for Medicare and Medicaid Services, seated right, gives a thumbs-up alongside his wife Lisa Oz, seated left, with friends and family after he testified at his confirmation hearing before the Senate Finance Committee, on Capitol Hill in Washington, Friday, March 14, 2025. (AP/Ben Curtis)
17 hours ago

Senate Confirms Mehmet Oz to Take Lead of Medicare and Medicaid Agency

Help continue the work that gets you the news that matters most.

Search

Send this to a friend