Mar 5, 2022 - Economy

IMF warns that war in Ukraine will have "severe impact" on global economy

Erin Doherty

The seal for the International Monetary Fund (IMF) is seen in Washington, DC on January 10, 2022. — The seal for the International Monetary Fund in Washington, D.C., on Jan. 10. Photo: Stefani Reynolds/AFP via Getty Images

The International Monetary Fund said Saturday that Russia's continued invasion of Ukraine and the related economic sanctions will have a "severe impact on the global economy."

Driving the news: "While the situation remains highly fluid and the outlook is subject to extraordinary uncertainty, the economic consequences are already very serious," the IMF said in a statement.

"The ongoing war and associated sanctions will also have a severe impact on the global economy," the IMF said.
The IMF also said it planned to bring Ukraine's request for $1.4 billion in emergency financing to its board for consideration as early as next week.

The big picture: Commodity and energy prices have surged since Russia invaded Ukraine, "adding to inflationary pressures from supply chain disruptions and the rebound from the Covid‑19 pandemic," the IMF wrote.

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IMF warns that war in Ukraine will have "severe impact" on global economy

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