International Monetary Fund says Ukraine economy could collapse if war drags on.
Written by News Room on March 16, 2022
The International Monetary Fund said on Monday that Russian invasion could plunge Ukraine into a devastating recession.
According to them, the war could have broader repercussions, including threatening global food security due to rising prices and the inability to plant crops, especially wheat.
The IMF said in an analysis of the economy in the wake of the Russian Invasion at a minimum the country would see output falling 10 percent this year assuming a prompt resolution of the war.
But the fund warned of massive uncertainty around the forecasts, and if the conflict is prolonged, the situation will worsen.
Citing wartime data for conflicts in Iraq, Lebanon, Syria and Yemen, the IMF said the annual output contraction could eventually be much higher, in the range of 25-35 percent.
Amen J Kantiyok