Threats and Effects of the Russia-Ukraine War on the Global Economy
Russia launched a full-scale invasion of Ukraine in late February 2022. And unfortunately, it’s not just these two countries that have been affected—even the rest of the world has suffered a major blow. Businesses are scrambling to devise the best strategy and corporate finance management practices to lessen the impact as much as possible. But there are still many threats to the global economy. · Inflation It’s no surprise that inflation has become an even bigger problem after the war. Food, energy, and other major commodities are seeing drastic price increases, affecting emerging markets and developing countries the most. According to the International Monetary Fund (IMF), inflation for emerging markets and developing economies are forecasted to rise by 8.7% in 2022. Meanwhile, advanced economies still suffer from a significantly high inflation rate of 5.7%. · The war and COVID-19 The Russia-Ukraine War has come at a time when the world is still recovering f