IMF downgrades global economy outlook amid Russia's war against Ukraine

16 April, 04:55 PM
IMF Managing Director Kristalina Georgieva (Photo:instagram.com/kristalina.georgieva/)

IMF Managing Director Kristalina Georgieva (Photo:instagram.com/kristalina.georgieva/)

Global economic growth in 2022-2023 will decline even more than previously forecast, affecting 143 economies around the world, IMF Managing Director Kristalina Georgieva has said in her latest video address.

"In January, we cut our global growth forecast to 4.4 percent for 2022,” Georgieva said. “Since then, the outlook has deteriorated substantially, largely because of the war and its repercussions," said the head of the organization.

She said that the situation was being exacerbated by other factors, such as inflation, financial tightening, the reintroduction of lockdowns in China, and, as a result, new disruptions in global supply chains.

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"As a result, we will be projecting a further downgrade in global growth for both 2022 and 2023," said Georgieva.

She noted that, fortunately for most countries, growth will still be positive.

"The impact of the war will contribute to forecast downgrades for 143 economies this year – accounting for 86% of global GDP," said the IMF chief.

As for Ukraine, not only governments but also international and intergovernmental organizations can transfer funds to an IMF special account set up to help Ukraine deal with the consequences of Russia’s unprovoked aggression, Georgieva said.

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