Per edit: Huang Sheng
On March 6, according to CCTV news reports, Ukrainian Defense Minister Leznikov said through social media on the 6th local time that the Ukrainian economy has turned into a wartime state, and various factories have remained in operation to complete military orders.
According to Xinhua News Agency reported on March 6, the International Monetary Fund (IMF) issued a statement on the 5th, saying that although the current situation in Ukraine is still changing rapidly and the future prospects are full of great uncertainty, the economic consequences have been very serious. The IMF will continue to assess crisis situations and provide policy advice, financial support and technical assistance to Member States in a timely manner as needed.
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Soaring prices of energy and commodities, including grains such as wheat, have further exacerbated inflationary pressures stemming from supply chain disruptions and a post-COVID-19 recovery, the statement said. Price shocks have a global impact, especially on poor households. If the conflict escalates, the associated economic losses will be even more damaging. At the same time, sanctions against Russia will have a significant impact on the global economy and financial markets, as well as a significant spillover effect on other countries.
The statement noted that the Crisis in Ukraine has had a negative impact on inflation and economic activity in many countries. Monetary authorities need to carefully monitor the transmission of rising international prices to domestic inflation in order to adjust the response. Fiscal policy needs to support the most vulnerable households as they cope with the rising cost of living. In addition, the crisis will bring complex policy trade-offs, further complicating policy efforts as the world economy recovers from the pandemic.
With the escalation of the Conflict between Russia and Ukraine, international oil prices and international wheat prices have risen sharply recently. The price of light crude oil futures for April delivery on the New York Mercantile Exchange has broken above $115 a barrel. The Chicago Board of Trade wheat May contract rose more than 40 percent this week.
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According to CCTV Finance quoted reuters data, Russia and Ukraine account for about 30% of the world's wheat exports, and corn exports account for about 20%. The United Nations World Food Programme has warned that disruptions in the supply chains of Russia and Ukraine will jeopardize the food security of millions of people around the world.
As the situation in Ukraine tightened, trade in Black Sea ports was seriously disrupted, pushing up the price of grains such as wheat. Wheat prices on the Chicago Board of Trade have risen as much as 40 percent since the conflict between Russia and Ukraine broke out on February 24. The United Nations World Food Programme has warned that supply chain disruptions in Russia and Ukraine will jeopardize the food security of millions of people around the world. Among them, some countries in the Middle East and North Africa, which rely heavily on Russian and Ukrainian exports for food supplies, are particularly vulnerable.
Even in the United States and Canada, wheat growers far away in North America, soaring wheat prices have put "pressure" on bakery owners and flour millers. In response to problems such as dwindling flour inventories and rising costs, many bakery owners have had to raise the price of bread and shift the increased costs to consumers. Rob McKay, president of the American Baked Goods Industry Association, said that in the short and medium term, the price of baked goods and grains in the United States will continue to rise. The most vulnerable groups in society will be hit the hardest.
Daily economic news is synthesized from CCTV News, Xinhua News Agency, CCTV Finance
Daily economic news