The International Monetary Fund (IMF) has lowered this Thursday the growth forecasts from 143 countries due to the effects of war in ukrainewhich has an impact on the 86% of the world’s gross domestic productas reported by the director of the entity, Kristalina Georgiev. He has done it the same day as the European Central Bank It has also acknowledged that the Russian invasion is “seriously damaging business and consumer confidence.”
In a speech prior to the start of the annual spring assembly that the organization will hold together with the world Bank next week, Georgieva has warned that the future of the economy is “extraordinarily uncertain” by invasion of russia a Ukraine and the Economic sanctions that the main global potentials are imposing on Moscow, as well as by the covid.
“We are experiencing one crisis on top of another,” Georgieva pointed out, referring to the outbreak of war when the world had not yet emerged from the coronavirus pandemic. Despite the drop in forecasts, the managing director of the international financial entity has assured that most countries will continue to be in positive territory.
Concern about inflation
In addition to the war in Ukraine and the covid, the economist has cited the “danger” that the high inflationwhich “is very high in the developed countriesbut even more so in some developing countries”, she indicated. On the other hand, Georgieva has also pointed to the “increasing fragmentation of the world’s economies into two geopolitical blocks: democracies and authoritarian regimes”.
The latest estimates The IMF forecasts that inflation will remain soaring for longer than previously expected, and has warned that there is a growing risk that the market’s expectations of inflation will become a self-fulfilling prophecy and more difficult to control.
The IMF will publish next Tuesday, within the framework of its assembly, the updated and detailed economic projections by region and country for 2022, 2023 and 2024.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.