Russia is responsible for much of the rising food and energy prices, but its economy has held up better than previous forecasts, even in the face of strong international sanctions. It is expected to contract by 2.3% in 2020, much less than many economists expected at the beginning of the year.
Officials at the International Monetary Fund (IMF) attribute this to the resilience of energy exports, which has allowed Russia to stimulate the economy and support the labor market. Yet Russia is facing a deep recession and its economic output is much lower than before the war.
When policymakers gathered in Washington, the impact of Russia’s invasion of Ukraine was of paramount concern.
Treasury Secretary Janet L. Yellen condemned Russia’s actions at a meeting of finance ministers convened to discuss the global food crisis. Russian Finance Minister Anton Siluanov attended the meeting online.
According to a transcript of the remarks provided by the Treasury Department official, Yellen said, “The Putin administration and the officials who serve it, including those who represent Russia at these rallies, bear witness to the immeasurable human suffering caused by this war. I am responsible,” he said.
Yellen called on the G20, which represents the world’s major economies, to step up financial support for countries facing food shortages and said she supported a debt service freeze for those in need. .
The economic slowdown in developed countries is putting pressure on emerging markets. Many emerging markets are already fragile and face high debt burdens as they recover from the pandemic. Higher interest rates, higher food costs and reduced demand for exports threaten to push millions of people into poverty. In addition, low vaccination coverage in countries such as Africa is prolonging the health impacts of the pandemic.
“The poor are the hardest hit,” World Bank President David Malpass told reporters before a meeting this week. “We are in the midst of a development that is in crisis.”