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IN-DEPTH: Countries face economic slowdown as Ukraine war disrupts food, energy supplies
Updated: 2022-06-30 17:07:26 KST
The war in Ukraine has especially impacted supplies of energy and supplies of grain.
Grain, in large part, because Russia is blockading Ukraine, preventing exports from one of the world's biggest producers.
Energy, because sanctions on Russia prevent it from exporting gas and oil.
When energy gets more expensive, so does everything else.
And the lack of wheat, and a cascading effect of other countries banning exports to protect themselves, puts people in some countries at risk of starvation.
For an in-depth look at the situation and prospects for a resolution of these problems, we are pleased to welcome to the program Dr. Christophe Andre, Senior Economist at the OECD.

1. Let's start with the grain supply situation. How serious is it? What are the knock-on effects from the blockade of Ukraine, and where in the world are people particularly at risk?

2. Russia is in talks with the Turkish government about creating a safe sea corridor for shipments from Ukraine. What are the prospects for an end to the blockade, if not the war? And even if shipments can get out, what's happened to Ukraine's ability to even grow wheat?

3. As for energy, oil prices have come down from their recent highs, but fuel prices are at record highs in most countries. The cost of heating, in Europe in particular, looks like it could be a serious problem this coming winter. To what extent is this because of the sanctions on Russia, and what other factors are at work?

4. What needs to happen for energy prices to come down? It seems like some OPEC countries aren't able to raise production right now. Can the world afford to keep these sanctions on Russia in place as they are right now?

5. How long are we going to be seeing inflation at these historic levels? Is it going to lead to a wage-price spiral? "Expected" inflation has gone up here in Korea, which could mean higher wages later.

6. In your view, are central banks going to go as far as necessary to bring down inflation with monetary policy, even if it means raising rates to a level above the inflation rate, as some have said needs to be done?
Reporter :