International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned about risks to the global economic growth due to the Ukraine crisis while speaking in an online event hosted by Foreign Policy magazine on Tuesday.

The IMF “forecasts due in April will show that the war in Ukraine will slow global economic growth, but will not cause a global recession,” Georgieva said.

She added: “Some weak emerging economies still struggling with the COVID-19 pandemic face the risk of recession due to shocks from higher food and energy prices, and tighter financial conditions due to interest rate hikes in advanced economies.”

Market reaction

Despite several global agencies raising red flags on the global economic damage due to the Russian invasion of Ukraine, the market mood remains upbeat, reflective of the 0.20% gains in the S&P 500 futures. Meanwhile, the US dollar index remains on the backfoot below 98.50.