Jakarta, CNBC Indonesia – The International Monetary Fund (IMF) said the war between Russia and Ukraine would have a major impact on the global economy. Especially from the increase in commodity prices that have occurred at this time.
In addition, countries with large economic ties to Russia are also at risk of supply disruptions. One of them is the country of Malvoda which is feeling the impact of the tensions between the two countries.
“The ongoing war and related sanctions will also have a severe impact on the global economy,” the IMF said.
This was conveyed by the IMF after a meeting chaired by Managing Director Kristalina Georgieva at the end of last week. Where the IMF sees there are serious consequences in the region.
As a result of these tensions, energy and wheat prices have soared. This of course has an inflationary effect from the pandemic and global supply chain disruptions.
“Price volatility will have an impact around the world, especially on poor households where food and fuel make up a higher proportion of spending. If conflict escalates, the economic damage will be even more devastating,” the IMF said in a statement.
In addition, the IMF said that the effects of sanctions on Russia would also extend to other countries.
Therefore, monetary authorities around the world are asked to carefully monitor price increases in their countries. And the policies taken must protect economically vulnerable households.
Meanwhile, the IMF will grant Ukraine’s request for a US$1.4 billion emergency fund. It will be presented to the Executive Board as early as next week.
(Lidya Julita Sembiring/dhf)
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