The International Monetary Fund (IMF) has recently published a report last week regarding the implications on the ‘Global Economy’ amidst the ongoing war in Europe. The IMF report gives an overview of “extraordinary uncertainty” in the air especially due to the crisis in Europe.
IMF isn’t the only one concerned about the implications on the ‘Global Economy”. Many analysts and economists around the world are concerned about the global economy and the aftermath of warfare taking place in Ukraine. Also, many countries across the globe are discussing and imposing sanctions on Russia.
Last week, IMF issued a staff statement, expressing concern about the economic impact of the war in Ukraine. IMF’s managing director Kristalina Georgieva chaired the report.
Due to the energy and commodities boom, there are “inflationary pressures from supply chain disruptions”. Moreover, all of this has the potential of slowing down the COVID-19 pandemic rebound. In fact, the IMF’s statement adds:
“Price shocks will have an impact worldwide, especially on poor households for whom food and fuel are a higher proportion of expenses.”
IMF explains with its report that war-related issues could sprew trouble for economic fallout across various countries.
Recent signals in various markets follow the same observations present in the IMF’s report. There is a steady upward trend in inflation which brings the fear of central banks increasing interest rates. Although the interest rate increase is expected this month, the situation in Europe can delay that for the time being.
Besides that, future markets have seen a drop across the board, equity markets share the same fate. Also, the crypto market is down too with a -3.2% change past 24 hours.