Warnings of social unrest and soaring inflation as ‘seismic’ effects of Ukraine war hit global economy

Warnings of social unrest and soaring inflation as ‘seismic’ effects of Ukraine war hit global economy

The world must brace itself for an economic slowdown, a burst in inflation and a potential wave of social unrest as energy and food prices rise to intolerable levels, the International Monetary Fund (IMF) has warned in its first assessment of the impact of the Russia-Ukraine war.

The IMF said that Ukraine's economy would contract by more than a third - the largest such fall in modern times.

It said the Russian economy will face its biggest recession since the aftermath of the fall of the Soviet Union, contracting by 8.5% this year amid sanctions from Europe and the US. The fund also slashed its forecast for economic output in almost all countries.