Because energy trade is shifting, supply chains are tearing and Russia has been excluded from the international payment network Swift, the global economic order will change fundamentally, the IMF announced on its website on Wednesday.
“The conflict is a major blow to the global economy that will hurt growth and push up prices,” the IMF said. Investor uncertainty, falling assets, poorer financing conditions and capital outflows from the emerging markets could also be triggered. The organization has already announced that it will lower its forecast for global economic growth. It will be below the previously predicted 4.4 percent for 2022. The IMF intends to publish more details on April 19.
The IMF also predicted a deep recession in Ukraine and Russia. In Europe, there could also be interruptions in natural gas imports and major supply chain disruptions. More capital could flow out of the Middle East and Africa. On Wednesday evening, the US Federal Reserve decided to increase the key interest rate – the first since the beginning of the corona crisis. Due to the high inflation, it will be increased by 0.25 percentage points to a range of 0.25 to 0.50 percent, the Federal Reserve announced after its interest rate meeting in Washington.
Source: Nachrichten
