The Russian invasion of Ukraine, in the wake of the corona virus outbreak, led to slowing economic growth and rising inflation. The International Monetary Fund (IMF) warned ahead of the World Economic Forum in Davos on Tuesday that the world economy was facing a catastrophe.
“The world economy is facing the biggest test since World War II,” say the authors of the study, which was posted on the IMF website.
“High food and energy prices around the world are hurting families. Tight financial conditions are putting more pressure on indebted countries, businesses and families. Countries and businesses are continuing to reevaluate their global supply chains,” the fund’s website said.
According to the IMF All the working class will be affected“From high-paid professionals and middle-income workers to low-wage workers who depend on imported food.”
“As our findings show, about 30 countries in Ukraine have had limited trade in food, energy and other vital commodities since the beginning of the war,” the IMF said, pointing out that the potential for reactivity to the crisis is very difficult. Russian occupation.
Higher restrictions will make it more difficult for developing countries to trade with rich countries. For larger economies, trade restrictions may cause them to spend more money on the same products they make Leading to higher inflationEvaluate the authors of the text posted on the Finance website.
According to the International Monetary Fund, countries can better deal with future disruptions to the world economy by removing trade barriers as much as possible and diversifying supply chains. It provides financial advice to the G20, one of the largest economies in the work of restructuring public debt. It does motivate you Modernization of the international payment system.
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