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War Dims Global Economic Outlook as Inflation Accelerates | IMF |

      The effects of the war will propagate
      far and wide, adding to price
      pressures and exacerbating significant
      policy challenges.

War slows recovery

The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution. At the same time, economic damage from the conflict will contribute to a significant slowdown in global growth in 2022 and add to inflation. Fuel and food prices have increased rapidly, hitting vulnerable populations in low-income countries hardest.

Global growth is projected to slow from an estimated 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This is 0.8 and 0.2 percentage points lower for 2022 and 2023 than projected in January. 

Beyond 2023, global growth is forecast to decline to about 3.3 percent over the medium term. War-induced commodity price increases and broadening price pressures have led to 2022 inflation projections of 5.7 percent in advanced economies and 8.7 percent in emerging market and developing economies--1.8 and 2.8 percentage points higher than projected last January. Multilateral efforts to respond to the humanitarian crisis, prevent further economic fragmentation, maintain global liquidity, manage debt distress, tackle climate change, and end the pandemic are essential.

'Sapere aude'
by Oui (Oui) on Wed Apr 20th, 2022 at 07:46:00 AM EST

'Sapere aude'
by Oui (Oui) on Wed Apr 20th, 2022 at 07:46:47 AM EST
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IMF head warns rising food and fuel prices strain family budgets 'to breaking point' | The Guardian |

IMF fiscal affairs director Vitor Gaspar said governments must target support measures at vulnerable people who are hit hardest by rising energy and food prices in the wake of the war in Ukraine.

He said the Washington-based fund was open to emergency financing for nations facing food insecurity, especially those struggling under high debts.

The IMF managing director Kristalina Georgieva said "rising food and fuel prices are straining the budgets of ordinary families to the breaking point". She warned of a "double crisis" from the Ukraine war and the Covid pandemic, which she said is a "massive setback for the global recovery," a day after the IMF slashed its global growth forecast.

'Sapere aude'
by Oui (Oui) on Wed Apr 20th, 2022 at 05:29:23 PM EST
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