Washington. World Bank and International Monetary Fund leaders said on Thursday they were ready to help Ukraine and warned that a Russian invasion would have repercussions on the global economic recovery.
International Monetary Fund Managing Director Kristalina Georgieva warned on Twitter that the conflict “adds a major economic danger to the region and the world”.
The Washington-based foundation is disbursing $2.2 billion in aid to Ukraine under a loan program that ends in June.
World Bank President David Malpass tweeted that he was “deeply saddened and horrified by the devastating events in Ukraine, which will have a far-reaching economic and social impact.”
He noted that the Foundation “is preparing options to provide significant support to the people of Ukraine and the region, including immediate budget support.”
Russia’s invasion of Ukraine on Thursday sent oil prices to their highest level since 2014, adding to worrisome global inflationary pressures.
In January, the International Monetary Fund lowered its forecast for global GDP for 2022 to 4.4 percent, half a point lower than its previous estimate in October, due to “blockades” caused by the latest wave of COVID-19.
The Federal Reserve is expected to raise interest rates next month for the first time since the outbreak of COVID-19, but it may have to act more aggressively if the Ukraine crisis disrupts commodities and pushes prices higher.
Loretta Meester, head of the central bank’s regional office in Cleveland, said the central bank will monitor the impact of the conflict on the world’s largest economy.
“The implications of the development of the situation in Ukraine for the medium-term economic outlook of the United States will be taken into account when determining the appropriate pace of withdrawal of support,” he said in a speech.
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