International Monetary Fund (IMF) Managing Director Kristalina Georgieva warned Thursday that the war between Russia and Ukraine has worsened the outlook for most of the world’s economies. Moreover, high inflation is now a clear danger.
Georgieva said the fallout from Russia’s invasion of Ukraine has lowered forecasts for 143 economies, although most economies are still growing.
The war is affecting world trade in energy and grain and is likely to cause food shortages in Africa and the Middle East.
Georgieva made the remarks in a speech to the spring meetings of the IMF and World Bank, which will be held next week in Washington.
The unexpectedly strong recovery of the economy from the Pandemic 2020 recession has taken companies by surprise. As a result, factories, ports, and loading terminals are unable to meet strong customer demand, leading to an increase in product prices
“High inflation is forcing many of the world’s central banks to raise interest rates, which is causing a slowdown in economic growth. This is a big problem for the global economic recovery,”Georgieva said,