It said the ripple effects of the war would hit many of the former Soviet republics hardest and many would be forced to seek further loans from the World Bank and the IMF to remain solvent. The World Bank’s Europe and central Asia regional data stretches from Ireland in the west to the Russian Federation in the east, but the report focused on emerging and developing countries in central and eastern Europe, the Balkans, Turkey and the former Soviet republics. The Bank said the second major shock in two years, after the pandemic, would lead to a 4.1% decline in economic output across the region – twice as steep as the recession in 2020 from the Covid-19 crisis. Last month, Georgieva said it was unlikely the war would trigger a global financial crisis, but warned of a severe recession in many countries close to the conflict. The Bank and the International Monetary Fund (IMF) will host finance ministers and central bank bosses at their annual spring meetings this week.ĭavid Malpass, the president of the World Bank, and the head of the IMF, Kristalina Georgieva, are expected to say they plan to offer extra financial support to countries affected by the invasion, many of which are suffering spiralling food costs. “The war is having a devastating impact on human life and causing economic destruction in both countries, and will lead to significant economic losses in the Europe and central Asia region and the rest of the world,” the World Bank said in its forecast published on Sunday. The Washington-based development organisation said Russia would also fall into recession and many countries surrounding Ukraine would suffer severe hardship, with some pushed to seek outside help from international agencies to prevent them defaulting on existing debts.
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |