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COVID is the biggest risk to the world economy in 2022, warns the IMF

COVID is the biggest risk to the world economy in 2022, warns the IMF

The IMF’s managing director admitted that inflation has turned out to be a “more important economic and social problem” than expected, and said economists had underestimated the impact of delayed consumption and weather shocks on food prices. .

Alert for Ukraine

The Fund’s leader urged finding a peaceful solution to the conflict between Russia and Ukraine, stressing that it already had an impact on energy prices and represented a threat to global growth.

“At a time of greater uncertainty for the growth of the world economy, geopolitical tensions only complicate the situation and we already see it in terms of the impact on energy prices,” said Kristalina Georgieva, interviewed by The Washington Post.

“We really hope that there will be a diplomatic solution because of the people of Ukraine, and also because of the need for a sustained recovery of the world economy,” he added.

Georgieva called for a “pragmatic” approach to ending this conflict, avoiding escalation and sanctions from the United Nations and the United States that would “inevitably” have repercussions for the entire world.

He recalled that the IMF is in the process of implementing a $2.2 billion aid package for Ukraine “between now and June.” He also said that the Fund is ready to provide additional assistance if necessary for Ukraine and other countries that would be affected by the conflict.

Russia has concentrated since the end of 2021 up to 100,000 soldiers on the border with Ukraine, according to the West, which accuses Moscow of preparing to attack this country.

Moscow denies any plan in this regard, while demanding written guarantees for its security, including the rejection of Ukraine’s accession to NATO and the end of the military reinforcement of the Atlantic Alliance in the East, in particular in the former Soviet republics. .

With information from Reuters and AFP

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