The IMF has lowered its forecasts for world economic growth due to russia's war in Ukraine
In 2022, there will decline in Ukraine's GDP by 35% according to the institution
According to CNBC, the International Monetary Fund has lowered its global growth forecasts for this and next year as the economic strike caused by russia's invasion of Ukraine is now “spreading everywhere”.
The fund, which is now based in Washington, is forecasting for global GDP growth to 3.6% in the years 2022 and 2023.
This means a decrease to 0.8 and 0.2 percentage points, according to forecasts presented in January.
The fund predicts an even gloomier assessment for the Ukrainian economy.
“The Ukrainian economy is expected to contract by 35% in 2022,” it was stated in the latest economic assessment of the IMF. It was also added that “precise measures of the damage to the Ukrainian economy are impossible to obtain”.
“And even if the war were to end soon, the loss of life, destruction of physical capital, and flight of citizens will severely impede economic activity for many years to come,” the IMF said.
Background. Earlier it was informed that the World Bank also lowered its forecast for world economic growth due to the russian war in Ukraine.
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