According to the International Monetary Fund, countries that have very close economic links with Ukraine and Russia may face scarcity and supply disruptions.
It added that as the Ukraine-Russia war persists, poor households across the world would suffer from the increase in food and fuel prices.
The US-based Fund said this on Saturday in a press statement, which was titled ‘IMF Staff Statement on the Economic Impact of War in Ukraine’.
The statement read in part, “Countries that have very close economic links with Ukraine and Russia are at particular risk of scarcity and supply disruptions and are most affected by the increasing inflows of refugees.”
According to the statement, the economic consequences are dire for the world, as there is a surge in energy and commodity prices.
“While the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious. Energy and commodity prices—including wheat and other grains—have surged, adding to inflationary pressures from supply chain disruptions and the rebound from the Covid‑19 pandemic.
“Price shocks will have an impact worldwide, especially on poor households for whom food and fuel are a higher proportion of expenses. Should the conflict escalate, the economic damage would be all the more devastating,” the statement read.
