Head of IMF: Donbas conflict threatening global economy

3 october 2014 | 12:09

The situation in the East of Ukraine, according to Lagarde, can cause the commodity prices and financial markets disruptions.

IMF Head
The Donbass conflict escalation is one of the threats to the world economy.
 The head of the International Monetary Fund (IMF) Christine Lagarde expressed the view that a possible Donbass conflict escalation is one of the threats for the development of the world economy.

According to her, in addition to the economic and financial risks for the development of the world economy, geopolitical risks are also possible.

"Further escalation of the situation in Ukraine is possible that can cause the disruptions in the commodity prices, financial markets and trade," she stated.

Among the geopolitical risks she noted the development of the political situation in the middle East and parts of Asia; and the further spread of the Ebola outbreaks in Africa, "which could pose a significant risk to the region and around the world."

According to her, all the risks are associated with enormous human suffering, but she hoped that they would not develop.

Previously Lagarde stated that the crisis in Ukraine will primarily affect Russia and neighboring countries in the region, including Germany and several other countries' "chain". "The crisis in Ukraine has a vulnerable side factors on Russia and neighboring countries, especially to those who belong to the German chain, so their trade, energy and financial linkages are vulnerable in varying degrees", - Lagarde said.


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