Washington (The Times Groupe)- The chief of the International Monetary Fund (IMF) Kristalina Georgieva warned Thursday that Russia’s war against Ukraine was hurting most country’s economic prospects, and called high inflation “a clear and present danger” to the global economy.
Kristalina Georgieva, Managing Director of the IMF, said 186 countries have been downgraded due to Russia’s invasion, although most will continue to grow. Energy and grain trade have been disrupted by the war, which threatens to cause food shortages in Africa and the Middle East.
Georgiaeva made her comments in remarks preparing for a speech on the eve of next week’s spring meetings of the IMF and the World Bank.
Unexpectedly strong economic recovery from 2020’s pandemic recession has caught businesses off guard, causing factories, ports, and freight yards to struggle to meet customer demand and raise prices. Georgieva said that inflation, which is forcing central banks around the world to raise interest rates, amounts to “a massive setback for the global recovery.”
She 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 regime of Vladimir Putin.
“The threat to our collective prosperity from a breakdown in global cooperation cannot be overstated,” Georgieva said. “War in Europe creates hunger in Africa; pandemics can encircle the globe in days and reverberate for decades; sea levels are rising almost everywhere as a result of global emissions.”