The International Monetary Fund on Saturday warned of a “serious impact” to the global economy due to the war in Ukraine.
“While the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious,” the fund wrote in a statement. “Should the conflict escalate, the economic damage would be all the more devastating.”
Energy and commodity prices have surged, the statement said, adding to existing inflation. The sweeping sanctions now in place against Russia will also have wide-ranging consequences.
Countries with close economic links to Ukraine and Russia will be hit especially hard, the IMF said, with particular risk of scarcity and supply disruption on top of the strain caused by inflows of refugees.
The IMF’s executive board met Friday to discuss the economic affects of the war. The board is expected to meet again next week to assess a request from Ukraine for $1.4bn (£1bn) of emergency financing.