The International Monetary Fund (IMF) has lowered its global growth forecasts for 2022 and 2023 due to the war in ukraine and its effect on inflation, but still forecasts a rise in GDP in most countries, announced the institution’s general director.
(See: Colombia, among the countries most affected by the rise in food, according to the IMF).
Russia invaded Ukraine on February 24, when the world economy was already facing the consequences of the variant omicron of the covid-19. And the war has aggravated inflation, which “now represents a real danger” to the recovery, Kristalina Georgieva stressed.
“In a nutshell: we are facing a crisis on top of another crisisGeorgieva lamented in a speech ahead of the annual meetings of the IMF and the World Bank.
Georgieva has not revealed the growth projections for each country, which will be published next Tuesday, April 19. But she indicates that “the economy of most countries will remain on positive ground“.
(See: Events that would ‘seriously’ affect world trade, according to the WTO).
That is, IMF economists do not anticipate a recession right now.
Nevertheless, “the impact of the war in Ukraine will contribute to lowering this year’s growth forecasts for 143 countries that represent 86% of world GDP“Georgieva said.
(See: Ukraine’s economy will contract 45% in 2022, according to the World Bank).
The situation varies greatly from country to country. The economic projections for Ukraine are “catastrophic” and the GDP contraction forecast for Russia it is “severe“, he warns.
(See: Intra-regional trade, a priority for economic reactivation).
AFP
