The Russian invasion of Ukraine, which was preceded by the coronavirus pandemic, lowered economic growth and increased inflation. The International Monetary Fund, on the eve of the World Economic Forum in Davos, warned that the global economy is facing a catastrophe.
“Perhaps the world economy is facing its biggest test since World War II,” say the authors of the study, published on the International Monetary Fund’s website.
The fund’s website reads: “Rising food and energy prices are stressing households around the world. Tight financial conditions are putting more pressure on highly indebted nations, businesses and households. Countries and companies are reassessing global supply chains in the face of ongoing disruptions.”
According to the International Monetary Fund All working classes will be affectedFrom high-paid, middle-income professionals to low-wage workers dependent on imported food.
“As our findings show, about 30 countries in Ukraine have had limited trade in food, energy and other basic commodities since the start of the war,” says the IMF, and notes that the ability to respond to the crisis has been extremely difficult due to Russian aggression.
High barriers can make it more difficult for developing countries to trade with wealthier countries. For larger economies, trade restrictions can cause them to spend more money on the same products they do Leads to higher inflationEvaluation of the authors of the text published on the Fund’s website.
According to the International Monetary Fund, by removing trade barriers as much as possible and diversifying supply chains, countries can better deal with future disruptions of the global economy. The fund also advises the Group of Twenty, a group of the largest economies, on working to restructure public debt. as encourages International Payment System Update.
