IMF lowered world economic growth by almost a percentage point

IMF lowered world economic growth by almost a percentage point

The war in ukraine and the high inflation have led to International Monetary Fund (IMF) to lower by eight tenths its previous growth forecast for the World economy by 2022, until placing it in the 3.6%, compared to the 4.4% it forecast last January.

In his report of global Economic Outlook, updated in the framework of the annual meeting of the IMF and the World Bank, the Fund reviews down the growth forecasts for 143 countries, which represents an impact on 86% of the world’s gross domestic product (GDP).

The IMF blames “mostly“This drop from pre-war forecasts in Ukraine, although he also cites as factors the historical inflation that is being experienced in much of the world and the confinements of entire cities that continue to occur due to covid-19, especially in China.

This crisis (the war) occurs when the global economy was on a recovery path from the pandemic, but had not yet fully recovered“, they indicated from the financial organism.

In the case of Russia, one of the 12 largest economies on the planet, the IMF forecasts a collapse of 8.5% this year and a fall of 2.3% in 2023, as a result of the conflict and the sanctions imposed by others. countries.

Although in January the IMF forecast for Russia a growth of 2.8%, three months later and after more than six weeks of war, the international financial institution has lowered that forecast by 11.3 points, and now projects a sharp contraction of the economy in the Slavic country.

Naturally, the worst economic consequences of the war are carried by the invaded country, Ukraine, whose GDP will collapse by 35% in 2022, and the effects will last for many years, even if the conflict reaches a prompt resolution, according to the Fund.

Russia and Ukraine are two of the largest cereal exporters of the world, especially from corn and wheat, In addition to providers of oil, natural gas and minerals in the Russian case, what makes the war shoot up the prices of raw materials throughout the planet and the economic consequences are being felt far beyond these two countries.

EFE

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