THE war in Ukraine and the mass sanctions against Russia shrink world trade and led to a sharp rise in food and energy prices, International Monetary Fund to revise its global growth forecasts next month, the IMF chief said today Kristalina Georgieva.
According to her, the unprecedented sanctions imposed on Moscow after its invasion of Ukraine caused a rapid contraction of the Russian economy, which is facing a “deep recession” this year. He even warned that Russia’s bankruptcy is no longer ‘unlikely’.
Georgieva said the IMF did not have a program with Russia at this stage and its office in Moscow was closed. Its members have condemned the war in Ukraine, but there has been no talk of ending Russia’s involvement in the IMF.
Putin warns the West that Russia will become stronger
Earlier, however, o Russian President Vladimir Putin He said Russia would become stronger and more independent when it overcame what it called illegal Western sanctions.
Vladimir Putin also said that there was no alternative to what Russia calls a special military operation in Ukraine and that Russia is not the country that would risk its sovereignty in order to reap short-term economic benefits.
“These sanctions would be imposed anyway,” Putin said during a government meeting. “There are some issues, problems and difficulties, which as we overcame in previous years, we will overcome now.”
Christine Lagarde: The crisis in Ukraine will negatively affect the economy of the euro area
The Russian invasion of Ukraine and the subsequent derailment of inflation forced on Thursday (10/3) the European Central Bank to accelerate the return to normalcy, as described by the head of the Bank Christine Lagarde the current decisions of the Board of Directors which accelerate the exit from the support program.
As mentioned among others by Christine Lagarde The crisis in Ukraine will negatively affect the economy of the euro area and has significantly increased uncertainty. If the baseline scenario is implemented, the economy will continue to recover thanks to the declining impact of the pandemic and the prospect of steady domestic demand and strong labor markets. Fiscal measures, including at European Union level, would also help shield the economy.
Source: News Beast
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