Ukraine's war and inflation pose a threat to the global economy. The International Monetary Fund (IMF) warned on Thursday that the war against Ukraine is eroding the economic prospects of most countries in the world. A high rate of inflation is also a threat to growth.
IMF Managing Director Kristalina Georgieva said the economic situation of 186 countries has deteriorated due to Russia's attack on Ukraine. The war has disrupted global trade in energy and grain. There is a danger of food shortages in Africa and West Asia.
He said the slowdown caused by the 2020 pandemic has led to an unexpected and strong recovery in the economies. This took the companies by surprise and they were unable to meet the strong customer demand, which has pushed up the prices. In addition, because of high inflation, central banks of various countries are raising interest rates.
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