IMF chief says war in Ukraine is the ‘single most important negative factor’ for global economy

The warfare successful Ukraine is the "single astir important antagonistic factor" for the satellite system this twelvemonth — and astir apt for 2023 arsenic well, IMF main Kristalina Georgieva told CNBC Wednesday. 

"We justice the warfare successful Ukraine to beryllium the azygous astir important antagonistic origin for the satellite system this year, astir apt besides adjacent year," she told CNBC's Martin Soong connected the sidelines of the Group of 20 gathering successful Bali, Indonesia.

"Anything that creates much anxiousness is, of course, damaging for the prospects for maturation and for gathering the needs and aspirations of radical everywhere," said the managing manager of the International Monetary Fund.

Her comments were successful effect to a missile that struck Polish territory precocious Tuesday, which killed 2 civilians. 

Preliminary assessments suggest the Russian-made rocket whitethorn person been fired by Ukrainian forces astatine an incoming Russian missile.

NATO's secretary-general said "there was no denotation this was the effect of a deliberate attack," adjacent arsenic investigations are ongoing.

"But fto maine beryllium clear, this is not Ukraine's fault. Russia bears eventual work arsenic it continues its amerciable warfare against Ukraine," Jens Stoltenberg said.

Most G-20 members condemned Russia's aggression against Ukraine in a draught declaration connected Tuesday.

"I privation to congratulate Indonesia for chairing truthful well, successful this precise hard moment," she said.

However, she stressed that the G-20 acme is not astir the information that there's a associated declaration, but the absorption has been "very pressing problems" — specified arsenic global inflation, rising costs of living, food and vigor security.

"I was listening precise cautiously to each the statements and it's encouraging that these are the issues we are focusing connected — arsenic we must."

"We are seeing immoderate signs of fragmentation already and they travel from a morganatic interest … the information of supplies," Georgieva told CNBC.

"We person seen [this] because of Covid and due to the fact that of the warfare successful Ukraine, that proviso chains get interrupted, and that damages maturation domestically and internationally."

She added that if the satellite chooses to spell into "separate blocs," determination volition beryllium a precocious terms to pay. 

"And this terms would beryllium peculiarly precocious for unfastened economies, and much broadly for the processing world," warned Georgieva. 

Asia and the Pacific, for example, could suffer implicit 3% successful gross home product if commercialized is chopped disconnected successful sectors deed by U.S. spot sanctions connected China and if non-tariff barriers successful different areas are raised to "Cold War-era levels," said the IMF successful a study past month. 

"If we privation not to suffer determination betwixt $1.4 [trillion] to possibly $3.4 trillion a twelvemonth — conscionable ideate what we tin bash with this wealth — past we should precise cautiously task the consequences of actions and beryllium omniscient to forestall sleepwalking into a satellite that is poorer and little secure," Georgieva said.