“Despite the fact that the situation is exceedingly fluid and forecasting is nearly impossible, the economic ramifications are already dire… Energy and commodity costs have risen, notably for wheat and other cereals, contributing to inflationary pressures caused by supply chain disruptions and the COVID-19 pandemic’s recovery”, the fund stated.
Price shocks, according to IMF experts, will be felt around the world, especially in low-income households, a large share of which is spent on food and fuel.
“Sanctions against Russia are also having a significant impact on the global economy and financial markets, with significant spillovers to other countries,” the IMF said, warning that countries in close economic relations with Russia or Ukraine are at greatest risk.
source: imf.org
