IMF Managing Director Kristalina Georgieva said the situation after the war is not as easy as it was before.
We use Google Cloud Translation Services. Google requires we provide the following disclaimer relating to use of this service:
This service may contain translations powered by Google. Google disclaims all warranties related to the translations, expressed or implied, including any warranties of accuracy, reliability, and any implied warranties of merchantability, fitness for a particular purpose, and noninfringement.
Recently, the International Monetary Fund (IMF) has warned that the global economic growth rate will decline. The main reason for this is the ongoing war in the Middle East, which is having a serious economic impact on the world. IMF Managing Director Kristalina Georgieva said that the situation after the war is not as easy as before. Even if the war is over, the global economy is not likely to return to a comfortable state immediately. Global economic growth has been greatly affected by the sharp increase in energy prices, damage to infrastructure such as roads and industries, disruptions in supply systems and loss of confidence in the market.
Georgieva said that large-scale financial assistance is urgently needed to support countries affected by the war. According to estimates, assistance of 20 billion to 50 billion dollars may be needed. In addition, the food crisis is also expected to increase, which will affect an additional 45 million people. This will increase the number of people affected by poverty and hunger to over 360 million. Poor and energy-importing countries will be hit hardest by the crisis. Meanwhile, World Bank President Ajay Wang said up to $25 billion could be made available in the short term to help developing countries. In the long term, up to $60 billion could be provided. The war has pushed up oil prices, as the blockade of key waterways has reduced global supplies.
This is also expected to lead to a rise in global inflation. Rising oil, gas and fertilizer prices will make food production more expensive, which will also increase food prices. This will increase the risk of hunger in poor countries. According to the organization, the output of countries that are at war initially drops by about 3 percent and the impact will be long-lasting.
