IMF Warns Ongoing War in Europe Will Have a ‘Severe Impact on the Global Economy’

The International Monetary Fund (IMF), in a Saturday report, warned that a continuing war in Europe and its associated sanctions would have a severe impact on the global economic system.

IMF’s Economic Outlook amid Ongoing War in Europe Predicts Price Shocks, Supply Chain Disruptions and Inflationary Pressures

Many economists and analysts are worried about the impact of the crisis on the global economy, and the consequences of the war in Ukraine. A large number of countries around the world are discussing or implementing Russian sanctions daily.

After the March 4th meeting of the executive board, the IMF released a staff statement on Saturday about the economic consequences of the conflict in Ukraine. According to the report, Kristalina Georgieva, the managing director of the IMF, presided over the meeting. The outlook for the IMF is not good and the international financial institution has seen the commodities and energy booms last week.

This has created inflationary pressures due to supply chain disruptions, which could slow down the rebound of the Covid-19 pandemic, according to the IMF report. The IMF statement states that price shocks will impact all households, particularly those living in poverty where fuel and food are more expensive.

According to the IMF report, war-related problems could cause economic decline in a number of countries. “Should conflict escalate, economic damage would be even more devastating — The sanctions against Russia will also have substantial impacts on the global economy, financial markets, and with significant spillovers into other countries,” notes the IMF communications department statement.

The Gold Price Continues to Rise, US Futures Markets Drop, Crypto Economy Slips more Than 3% in 24 hours

According to the IMF, the statements published Saturday were in response to recent signs of a recession. One analyst said that the fallout from an economic downturn could be 10x worse than the Great Depression. Investors are concerned about central banks increasing interest rates and cutting large asset purchases. The U.S. Federal Reserve will likely raise the benchmark rate but some believe that the ongoing conflict in Europe could prevent from occurring.

IMF Warns Ongoing War in Europe Will Have a 'Severe Impact on the Global Economy'

The price of one ounce of.999 gold fine has increased by 0.84% over the past 24 hours to $1,989 an ounce on March 6. The Dow Jones futures fell significantly on Sunday evening (EST), along with declines in Nasdaq and S&P 500 options. The Equities markets will be agitated on Monday, while the global cryptocurrency market capitalization fell in value on Sunday. At 8:00 PM (EST), the crypto economy was down $1.8 trillion and has seen a -3.2% increase in value over the past 24 hours.

The IMF stated that Ukraine has suffered severe infrastructure damage. The IMF stated last week that $2.2 billion is available for Ukraine between now and June. The World Bank Group, a group of five international entities that make leveraged loans to countries and provides support, has “prepared a $3 billion package in the coming months,” according to the IMF.