Ukraine wars and sanctions, including US sanctions on Russian oil imports, are spreading on the global economy.
The IMF is expected to cut its global growth forecast because of the economic damage from Russia’s invasion of Ukraine, managing director Kristalina Georgieva said on Thursday.
Georgieva told reporters that in addition to the damage to Ukraine, sanctions imposed by Western countries on Moscow in response to the war would result in a “sharp contraction” of the Russian economy.
Russia is “heading towards a deep recession,” she said, and a loan default is no longer “an impossible event.”
The IMF in January slashed global growth forecast to 4.4 per cent by 2022, due to the negative effects of the Omicron version of Covid-19, with worldwide GDP growing by 5.9 per cent last year. The IMF is due to publish an updated forecast next month.
Ukraine wars and sanctions, including US sanctions on Russian oil imports, are spilling over into the global economy, raising the cost of energy and other key commodities such as wheat, fertilizers and metals.
“This comes on top of already high inflation, and is causing serious concern in many places around the world,” Georgieva said.
“We met a crisis with the pandemic like no other. We are now in even more shocking territory. The unthinkable happened: We have a war in Europe.”
(This story has not been edited by UttarPradeshLive.Com staff and is auto-generated from a syndicated feed.)
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