And it said countries with close economic ties to Russia are also at risk for shortages and supply disruptions. It is in talks with neighboring Moldova for aid options.
“The ongoing war and associated sanctions will also have a severe impact on the global economy,” the IMF said.
“Price shocks will have an impact worldwide, especially on poor households for whom food and fuel are a higher proportion of expenses,” the IMF said in a statement. “Should the conflict escalate, the economic damage would be all the more devastating.”
The IMF said the effects of sanctions on Russia would also spill into other countries.
Monetary authorities throughout the world will have to carefully monitor rising prices in their nations, it added, and policies should be implemented to protect economically vulnerable households.
