International Monetary Fund (IMF) President Kristalina Georgieva made assessments on the global economy at the event organized by The Washington Post.
Emphasizing that finding a way to reduce the tension between Russia and Ukraine is very important for the world economy, he said that the tension between the two countries has already affected energy prices.
"At a time of higher uncertainty for growth in the world economy, geopolitical tensions are only complicating the situation," Georgieva said. said.
Pointing out that possible sanctions against Russia will inevitably disrupt financial activities, Georgieva noted that the fund is ready to help if the possible conflict between Russia and Ukraine and the effects of the sanctions spread to other countries.
Stating that the IMF has $2.2 billion to be provided until June within the scope of its ongoing program with Ukraine, Georgieva stated that if the effects of the possible conflict spread to other countries, the fund has a loan capacity of $700 billion.
"Inflation is a more serious problem than was thought a few months ago"
Stating that the global economic recovery continues, albeit slowly, Georgieva explained that the recovery lost momentum due to the Kovid-19 epidemic, which continued with the slowdown in major economies such as the USA and China.
Georgieva stated that the Kovid-19 outbreak continues to cause an increase in prices with supply chain disruptions.
Emphasizing that the epidemic continues to be the biggest threat to the global economy, Georgieva noted that the fight against the epidemic will help the economy to recover.
Referring to the rise in inflation, Georgieva said, "Inflation is a more serious economic and social problem than was thought a few months ago." made its assessment.
Stating that the US Federal Reserve (Fed) has done a "good job" in communicating its anti-inflation strategies, Georgieva said that anti-inflation actions must be carefully balanced with the needs to support economic recovery.
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