Global economy is affected by war, IMF Chief warns, food crisis will increase due to expensive oil and fertilizers – ..

News India Live, Digital Desk: Increasing tensions in the Middle East and Iran-US conflict Managing Director of the International Monetary Fund (IMF) between Kristalina Georgieva Has issued a serious warning regarding the global economy. He made it clear that if this war drags on, its consequences will not be limited to oil prices only, but will also affect the world. Food Inflation A big crisis will arise.

Main reason for the crisis: Blockade of ‘Strait of Hormuz’

The world’s most important waterway after increased military tension between Israel and Iran on February 28 ‘Strait of Hormuz’ It has almost come to a standstill. Its effects are as follows:

Energy price surge: Due to oil supply disruptions, shipping costs and fuel prices have increased to record highs.

Fertilizer Crisis: This route is the lifeline for transportation of manure. Stopping the delivery of fertilizers will directly affect crop production, making grains and other food items expensive.

Who will suffer the most?

Strategy Director of IMF Christian Mumsen Said that inflation will hit poor and developing countries the most because a large part of their expenditure is on food:

IMF financial assistance and suggestions

Georgieva, speaking to reporters in Washington, shared some key points for relief and economic stability:

Need new help: Demand for financial assistance in future 20 billion to 50 billion dollars Can reach. Currently 39 IMF programs are running and a dozen new countries are in line for help.

Advice to central banks: Instead of making hasty changes in interest rates ‘Wait and Watch’ Adopt a (watch and wait) policy.

Warning to governments: In the name of reducing inflation Export Ban Or tax cut Do not take populist steps like this, because this can disturb the balance of the market.