In Ukraine the “unthinkable” happened due to the attack carried out by Russia. This was announced on Background Monetary Internationalwhich explains the “tragic” consequences of the war in Europe on the wholeworld economy. Obviously starting from the effects that the conflict is having in the Eastern country bombed by Vladimir Putin’s forces and widening the gaze to the rest of the continent and beyond. The markets, which are already struggling to recover from the blow of the Covid pandemic, will now suffer what is referred to as a shock on a global scale.
What are the devastating consequences of the war in Ukraine on the world economy
The war and the sanctions imposed on Russia will have serious consequences, the IMF said, especially in the countries that border with Russia and Ukraine, which will then expand everywhere. Influencing the prices of commoditythat is, of undifferentiated goods, the broken migratory and the relations Of trust in the various markets. Disastrous damage that today is impossible to quantify, but also with long-term effects.
The prices of the matter energeticbut also those of the food, which concern both those directly imported from Ukraine and Russia, and those arriving from other countries. A definite time granaio of Europe, the two states no longer supply a large percentage of grain to the continent. However, they supply several Third World countries. With exports to a halt, it is easy to see how rising demand everywhere is already causing supply shortages and increasing prices.
I refugees of war are already seeking and finding assistance in neighboring countries, which have already put in place all possible means for welcoming and integrating escape from the terrible war in Ukraine. But immigration could cause it fractures policiesoutbreaks of xenophobia, affect the budget of individual states and, last but not least, cause damage in the markets.
Consumer and business confidence, a very difficult parameter to calculate, is fundamental for the good performance of the economy. The conflict is already hitting Ukraine heavily, while sanctions and the flight of capital and multinationals from Russia will have devastating impacts on the country, which could have repercussions with a effect domino over all of Europe.
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How Ukraine and Russia cope with the economic crisis: aid from the world
The International Monetary Fund, in order to face the crisis on the horizon, has already arranged and approved a series of interventions aimed at supporting Ukraine. It is about 1.4 billion dollars as RFI, a rapid financing tool, to mitigate the impact of the war on the country’s economic system.
The IMF had already given in December 700 Millions of dollars to Ukraine. It also granted special drawing rights to the country for 2.7 billion dollars. These figures are particularly important for Kiev in this very difficult historical moment, which will allow the economy not to suffer the strong repercussions of the conflict.
On Russia, and on the impact of war and sanctions on Moscow’s estate, there is an atmosphere of great uncertainty. We know it will go through a serious period of recessionperhaps mitigated by new trade agreements in the East. But we don’t know how much damage its economy will actually suffer.
“Devastating Consequences” of War in Ukraine Worldwide: The Solution
As far as the rest of the world is concerned, the IMF underlines, the response of decision makers will be of vital importance to resolve the crisis ahead of us. community international. Institutions such as the Fund itself will play an important mediating role among world leaders. If the situation worsens, however, it will be difficult to carry out actions in a compact manner.
The analysts of the institution launch the warning on the possible enlargement of the conflict beyond Ukraine: it would have “consequences still more devastating”On the economic level, as well as obviously those in terms of loss of human, social and humanitarian life.
We have explained to you here which countries are spending the most on humanitarian aid to Ukraine. The country will also have to pay large amounts war expenses: here who is financing Kiev. In addition to the “abstract” effects on the economy, the war is already having an effect on our pockets: that’s what they are.
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