Global economic outlook has ‘darkened significantly’: IMF

July 16, 2022

According to the IMF’s managing director, Kristalina Georgieva the global economic outlook has “darkened significantly” and could deteriorate further, citing Russia’s war in Ukraine and the rapid inflation it has caused, threatening widespread hunger and poverty.
The warning comes just months after the IMF already cut its global growth forecast for 2022 and 2023.
The Ukraine war hit as the world was struggling to recover from the ongoing impact of the Covid-19 pandemic, and has caused an acceleration of inflation that endangers the gains of the past two years.
According to Kristalina Georgieva, the international crisis-lender is “projecting a further downgrade to global growth” in 2022 and 2023.
The outlook remains extremely uncertain and the poorest is expected to suffer the most.
The risk of social instability was also increasing due to food and energy prices rising.