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IMF downgrades global economic growth forecast due to Ukraine crisis

[신화/내외뉴스통신] Reporter Lee Song-ok

A passerby passes in front of the headquarters of the International Monetary Fund (IMF) in Washington, DC on March 30, 2021. (Photo = provided by Shinhwa Communications)

The International Monetary Fund (IMF) announced on the 10th that it is highly likely to downgrade its global economic growth forecast for next month due to the Ukraine crisis.

IMF Managing Director Kristalina Georgieva said the crisis in Ukraine is driving up commodity prices, affecting real incomes and the real economy, as well as fiscal and business confidence, and the world is being hit hard.

“The fiscal situation in many countries is worsening as the pressure on oil and natural gas prices increases,” Georgieva said.

“In the case of emerging markets, the decline in corporate confidence and the austerity situation caused by the Ukraine crisis will have a complex effect and will cause difficulties,” he added.

IMF Senior Vice President Gita Gopinath said that the global system will change in an important direction in the aftermath of the Ukraine crisis.

“The energy sector is changing, and changes are taking place in payment systems around the world,” he said. He added that the outbreak could allow central banks to accelerate the transition to digital currencies.

Meanwhile, the International Monetary Fund (IMF) predicted in its World Economic Outlook report in January that the global economic growth rate for 2022 would be 4.4%, down 0.5 percentage points from October last year.

Domestic and foreign news communication, NBNNEWS

Article URL: http://www.nbnnews.co.kr/news/articleView.html?idxno=661734