The Strategist

The IMF: Impact of conflict in Ukraine on global inflation has diminished

04/05/2024 - 03:14

International Monetary Fund (IMF) Director of Communications Julie Kozack stated that the crisis in Ukraine has substantially lessened its influence on global inflation, which includes rising food and energy costs. She claimed this was the outcome of actions taken by the central banks of many nations.
"A global cost-of-living crisis resulted from the surge in food and energy prices, with low-income countries bearing the burden of the increase in food prices," Kozack stated at the briefing. "Since then, there has been a global easing of this very significant inflationary pressure."

Julie Kozak also pointed out that the conflict continues to have an effect on the world economy. The outlook for the Ukrainian economy is still unclear because of the ongoing actions. Delays in obtaining outside funding are raising the risks.

The global economy has shown "surprisingly resilient" to geopolitical crises and the effects of regional wars, according to Kristalina Georgieva's February statement. In 2023, growth surpassed forecasts, and in 2024, a decline in global core inflation is anticipated. The forecast for annual average global economic growth is at 3%.