According to Georgieva, what is happening in Ukraine has a “ripple effect” on other states. Poor countries and populations will be hardest hit, she said.
The socio-economic consequences of the fighting in Ukraine and the imposition of sanctions against Russia can be compared with the destruction from an earthquake, stated Head of the International Monetary Fund (IMF) Kristalina Georgieva during a speech at the organization.
“What we are facing right now is like a very, very strong earthquake. Its epicenter is Ukraine and, as I would add, Russia, taking into account the sanctions,” said Georgieva.
According to her, what is happening is having a “ripple effect” on a number of countries and segments of the population. Most of all, the head of the IMF noted, “poor countries and the poor strata of the population” suffer. “But it can also lead to tectonic shifts,” she added.
Reuters learned about the EU’s intention to limit Russia’s voting rights in the IMF
At the same time, last week, March 13, Georgieva said that the world is not yet threatened by a global financial crisis due to Russia’s special military operation in Ukraine. The fund is lowering global GDP growth forecasts in 2022, she said, but for countries that have recovered quickly from the COVID-19 crisis, such as the United States, economic growth will be stable, and for those who “lagged behind”, the consequences will be more serious.