The IMF will publish an updated outlook for the world economy next week. The IMF’s January forecast estimates that the world economy will grow at 4.4 percent this year. He expects economic growth to slow to 3.8 percent next year.
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Georgiev said today that Russia’s attack on Ukraine was a heavy blow to economies that are now trying to recover from the negative effects of the covid-19 pandemic. “The root cause of what we are facing today is war. And this war must end, “she added.
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Today, the head of the IMF also warned against the fragmentation of the world economy into geopolitical blocs with different business and technological standards, payment systems and reserve currencies. “It would disrupt supply chains, R&D and production networks and would need to be rebuilt,” she added.
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She also noted that the war is creating problems in the food market, as it disrupts the supply of grain and fertilizers from Ukraine, Russia and Belarus. Without coordinated measures to support food supplies, Georgiev said there was a risk of hunger, poverty and social unrest in many countries, Reuters reported.
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