IMF Adds To Negative Tone For Indias Economic Outlook From Ukraine War

Author : Dhowcruise
Publish Date : 2022-03-18 00:00:00


IMF Adds To Negative Tone For Indias Economic Outlook From Ukraine War

The International Monetary Fund (IMF) said the disruptions to the world economy from the escalating Russia-Ukraine war would negatively hurt Asia's third-largest economy and the widespread worries of the impact of the Russia-Ukraine conflict on the world economy. "The global economic fallout of the war is expected to negatively impact India's economy through several channels, which differ from those impacting the Indian economy during COVID-19," Gerry Rice, International Monetary Fund's Director of the Communications Department, told reporters. Mr Rice said the sharp rise in global oil prices represents a vital trade shock with macro-economic implications. It will lead to higher inflation and a current account deficit; he said as Russia launched what it calls a "special military operation" in Ukraine on February 24. The Reserve Bank of India finds itself in a dilemma between slowing economic growth and higher inflation tagged along with the US Federal Reserve set to tighten policy this week. India's latest inflation data showed price pressures rose further in February to above the Reserve Bank of India's upper end of the 2-6 per cent target band for a second straight month. That was even before the impact of the Russian invasion of Ukraine late last month. Data also showed the trade deficit widened to $17.94 Billion in February, with higher fuel import bills taking the lion's share, suggesting a further widening from the rise in global energy prices on supply concerns. That does not cover the surge in crude prices to above $100 a barrel and the spike in costs of a broad range of commodities, driven by supply concerns after Western countries' sanctions and oil import embargo on Russia in response to its invasion Ukraine. "But the impact on the current account could potentially be partially offset by favourable movements in prices of commodities that India exports, for example, wheat," Mr Rice said. He added that the negative impact of the war in Ukraine on the US, the EU and Chinese economies could dampen external demand for India's exports. In contrast, supply chain disruptions could negatively impact India's import volumes and prices.

The International Monetary Fund (IMF) said the disruptions to the world economy from the escalating Russia-Ukraine war would negatively hurt Asia's third-largest economy and the widespread worries of the impact of the Russia-Ukraine conflict on the world economy. "The global economic fallout of the war is expected to negatively impact India's economy through several channels, which differ from those impacting the Indian economy during COVID-19," Gerry Rice, International Monetary Fund's Director of the Communications Department, told reporters. Mr Rice said the sharp rise in global oil prices represents a vital trade shock with macro-economic implications. It will lead to higher inflation and a current account deficit; he said as Russia launched what it calls a "special military operation" in Ukraine on February 24. The Reserve Bank of India finds itself in a dilemma between slowing economic growth and higher inflation tagged along with the US Federal Reserve set to tighten policy this week. India's latest inflation data showed price pressures rose further in February to above the Reserve Bank of India's upper end of the 2-6 per cent target band for a second straight month. That was even before the impact of the Russian invasion of Ukraine late last month. Data also showed the trade deficit widened to $17.94 Billion in February, with higher fuel import bills taking the lion's share, suggesting a further widening from the rise in global energy prices on supply concerns. That does not cover the surge in crude prices to above $100 a barrel and the spike in costs of a broad range of commodities, driven by supply concerns after Western countries' sanctions and oil import embargo on Russia in response to its invasion Ukraine. "But the impact on the current account could potentially be partially offset by favourable movements in prices of commodities that India exports, for example, wheat," Mr Rice said. He added that the negative impact of the war in Ukraine on the US, the EU and Chinese economies could dampen external demand for India's exports. In contrast, supply chain disruptions could negatively impact India's import volumes and prices.The International Monetary Fund (IMF) said the disruptions to the world economy from the escalating Russia-Ukraine war would negatively hurt Asia's third-largest economy and the widespread worries of the impact of the Russia-Ukraine conflict on the world economy. "The global economic fallout of the war is expected to negatively impact India's economy through several channels, which differ from those impacting the Indian economy during COVID-19," Gerry Rice, International Monetary Fund's Director of the Communications Department, told reporters. Mr Rice said the sharp rise in global oil prices represents a vital trade shock with macro-economic implications. It will lead to higher inflation and a current account deficit; he said as Russia launched what it calls a "special military operation" in Ukraine on February 24. The Reserve Bank of India finds itself in a dilemma between slowing economic growth and higher inflation tagged along with the US Federal Reserve set to tighten policy this week. India's latest inflation data showed price pressures rose further in February to above the Reserve Bank of India's upper end of the 2-6 per cent target band for a second straight month. That was even before the impact of the Russian invasion of Ukraine late last month. Data also showed the trade deficit widened to $17.94 Billion in February, with higher fuel import bills taking the lion's share, suggesting a further widening from the rise in global energy prices on supply concerns. That does not cover the surge in crude prices to above $100 a barrel and the spike in costs of a broad range of commodities, driven by supply concerns after Western countries' sanctions and oil import embargo on Russia in response to its invasion Ukraine. "But the impact on the current account could potentially be partially offset by favourable movements in prices of commodities that India exports, for example, wheat," Mr Rice said. He added that the negative impact of the war in Ukraine on the US, the EU and Chinese economies could dampen external demand for India's exports. In contrast, supply chain disruptions could negatively impact India's import volumes and prices.The International Monetary Fund (IMF) said the disruptions to the world economy from the escalating Russia-Ukraine war would negatively hurt Asia's third-largest economy and the widespread worries of the impact of the Russia-Ukraine conflict on the world economy. "The global economic fallout of the war is expected to negatively impact India's economy through several channels, which differ from those impacting the Indian economy during COVID-19," Gerry Rice, International Monetary Fund's Director of the Communications Department, told reporters. Mr Rice said the sharp rise in global oil prices represents a vital trade shock with macro-economic implications. It will lead to higher inflation and a current account deficit; he said as Russia launched what it calls a "special military operation" in Ukraine on February 24. The Reserve Bank of India finds itself in a dilemma between slowing economic growth and higher inflation tagged along with the US Federal Reserve set to tighten policy this week. India's latest inflation data showed price pressures rose further in February to above the Reserve Bank of India's upper end of the 2-6 per cent target band for a second straight month. That was even before the impact of the Russian invasion of Ukraine late last month. Data also showed the trade deficit widened to $17.94 Billion in February, with higher fuel import bills taking the lion's share, suggesting a further widening from the rise in global energy prices on supply concerns. That does not cover the surge in crude prices to above $100 a barrel and the spike in costs of a broad range of commodities, driven by supply concerns after Western countries' sanctions and oil import embargo on Russia in response to its invasion Ukraine. "But the impact on the current account could potentially be partially offset by favourable movements in prices of commodities that India exports, for example, wheat," Mr Rice said. He added that the negative impact of the war in Ukraine on the US, the EU and Chinese economies could dampen external demand for India's exports. In contrast, supply chain disruptions could negatively impact India's import volumes and prices.The International Monetary Fund (IMF) said the disruptions to the world economy from the escalating Russia-Ukraine war would negatively hurt Asia's third-largest economy and the widespread worries of the impact of the Russia-Ukraine conflict on the world economy. "The global economic fallout of the war is expected to negatively impact India's economy through several channels, which differ from those impacting the Indian economy during COVID-19," Gerry Rice, International Monetary Fund's Director of the Communications Department, told reporters. Mr Rice said the sharp rise in global oil prices represents a vital trade shock with macro-economic implications. It will lead to higher inflation and a current account deficit; he said as Russia launched what it calls a "special military operation" in Ukraine on February 24. The Reserve Bank of India finds itself in a dilemma between slowing economic growth and higher inflation tagged along with the US Federal Reserve set to tighten policy this week. India's latest inflation data showed price pressures rose further in February to above the Reserve Bank of India's upper end of the 2-6 per cent target band for a second straight month. That was even before the impact of the Russian invasion of Ukraine late last month. Data also showed the trade deficit widened to $17.94 Billion in February, with higher fuel import bills taking the lion's share, suggesting a further widening from the rise in global energy prices on supply concerns. That does not cover the surge in crude prices to above $100 a barrel and the spike in costs of a broad range of commodities, driven by supply concerns after Western countries' sanctions and oil import embargo on Russia in response to its invasion Ukraine. "But the impact on the current account could potentially be partially offset by favourable movements in prices of commodities that India exports, for example, wheat," Mr Rice said. He added that the negative impact of the war in Ukraine on the US, the EU and Chinese economies could dampen external demand for India's exports. In contrast, supply chain disruptions could negatively impact India's import volumes and prices.The International Monetary Fund (IMF) said the disruptions to the world economy from the escalating Russia-Ukraine war would negatively hurt Asia's third-largest economy and the widespread worries of the impact of the Russia-Ukraine conflict on the world economy. "The global economic fallout of the war is expected to negatively impact India's economy through several channels, which differ from those impacting the Indian economy during COVID-19," Gerry Rice, International Monetary Fund's Director of the Communications Department, told reporters. Mr Rice said the sharp rise in global oil prices represents a vital trade shock with macro-economic implications. It will lead to higher inflation and a current account deficit; he said as Russia launched what it calls a "special military operation" in Ukraine on February 24. The Reserve Bank of India finds itself in a dilemma between slowing economic growth and higher in



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