The Secretary-General of the United Nations (UN), António Guterres, said on Wednesday (13), that the war between Russia and Ukraine exacerbates a series of problems for the global economy.
“Inflation is rising, purchasing power is eroding, growth prospects are weakening and development is stagnating,” he warned at a press conference to present a report by Unctad on the subject.
Guterres added that many developing countries are “running into debt” amid escalating sovereign bond yields.
According to him, this movement increases the risk premium and puts pressure on exchange rates. “This is causing a potential vicious cycle of inflation and stagnation, called stagflation,” he commented.
The Secretary-General recommended that the international community work to keep global food and energy markets functioning, to prevent the situation from worsening. “This is not the time for protectionism”, he stressed, also asking that the context be used as an opportunity to accelerate the transition to a green economy.
To Guterres, resources should be made available to countries most in need, in order to prevent governments from entering into default of its debt. “Above all, this war must end,” he said.
Source: CNN Brasil
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