Global financial crisis will last until ‘the war is stopped’, economist says

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05:13

Food shortages, energy price hikes and global economic crises will continue as long as Russia’s conflict in Ukraine drags on, a leading economist says.

Columbia University development expert Jeffrey Sachs told CGTN Europe the “poorest countries” will continue to suffer the most from short-term food shortages and a lack of fertilizers which will severely affect future harvests, as Ukrainian ports remain blocked.

While wealthier countries may be able to survive on other sources, Sachs pointed to “more general financial upheavals” arising from the conflict.

“Rising inflation, stagflation, central bank tightening response. We’re going to suffer a hard landing if we don’t stop these shocks,” the former United Nations (UN) adviser said.

“The economic consequences around the world are extremely serious. We don’t have the tools to adapt to them. We will have an economic crisis until this war is stopped,” he added.

Despite global economic difficulties and Western sanctions, Russia will not be isolated or forced to abandon the so-called “special military operation” because its money is running out, according to Sachs. “Most of the world has economic exchanges with Russia, [and] want it to continue. So the isolation is with the West.”

He added: “When the United States has tried in the past to completely isolate other countries like North Korea, Iran or Venezuela, it doesn’t really work. Most of the world doesn’t just to line up and say, ‘yes, we’re following the US lead on this.’ And I think in the case of Russia, even less so.”

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