In a brief statement issued on Tuesday, the IMF said the fighting has already led to disruptions in economic activity and trade flows, accompanied by sharp increases in energy prices and heightened volatility across financial markets.
The Fund described the situation as “highly fluid”, warning that it adds a new layer of uncertainty to an already fragile global economy. It said it is too early to assess the full economic impact on the region or the world, as this will depend on how widely the conflict spreads and how long it lasts. IMF economists are closely tracking developments and will present a full assessment in the April edition of the World Economic Outlook.
The outbreak of violence has already rattled global markets. Oil prices surged as investors feared supply constraints, while equities and emerging market currencies experienced heightened volatility.
–IMF/ChannelAfrica–
