The head of the IMF assessed the consequences of the continuation of the Ukrainian conflict for the world economy

The head of the International Monetary Fund (IMF), Kristalina Georgieva, said that, according to IMF forecasts, 2023 will be a difficult year for the global economy. According to her, due to the consequences of the Ukrainian conflict, the GDP growth rate of the global economy will be below 3%. Ms. Georgieva announced this during the Boao Asian Forum.

“The global economy has been in a turbulent environment for some time, experiencing shock after shock. We expect that 2023 will be another difficult year, with global economic growth falling below 3% due to the effect of the war in Ukraine,” the head of the IMF said (quoted by TASS).

In addition, Ms. Georgieva noted that the world is currently witnessing a rapid transition from low to much higher interest rates. “Inflation inevitably creates turbulence for the banking sector of some economically developed countries,” she specified.

According to the latest IMF report, despite the decline in the cost of food and energy from the peaks of March 2022, due to the continued volatility of commodity prices, they still remain high and threaten food and energy security in the world. Experts note that in the current “alarming situation” the authorities of states often choose quite radical and illiterate measures to contain it. The IMF called on countries to act in a consolidated manner so as not to increase the ongoing fragmentation of the global economy.

Read more about the IMF’s initiatives to overcome the global crisis – in the material “Kommersant” “No time for improvisation”.

Milena Kostereva