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IMF Predicts Slower Global Economic Growth Amid Ukraine-Russia Conflict

Strategic Insights

— 1 min read

The International Monetary Fund (IMF) World Economic Outlook has forecasted a slower pace of global economic growth due to the ongoing Ukraine-Russia conflict, with the world economy expected to grow by 0.8 percentage points in 2022 and 0.2 percentage points in 2023. The conflict has led to higher food and energy prices, which will have a significant impact on the global economy. Inflation is expected to remain elevated this year but moderate in the following year.

Key Takeaways:

  • The IMF predicts a 3.6% GDP growth for the current and the following year, which is 0.8 percentage point slower in 2022 and 0.2 percentage point slower in 2023 compared to the previous forecast.
  • The war against Ukraine will have a significant impact on the world economy, with higher food and energy prices expected to affect global markets.
  • The IMF has revised down Lithuania's growth projections for this year to 1.8%, which is 2.3 percentage points slower compared to the autumn forecast.
  • Inflation is expected to reach 13.3% this year but will moderate to 4.3% next year.
  • China's slow growth (forecasted at 4.4% for 2022) will have a negative impact on the development of many countries.
  • The IMF stresses that multilateral efforts are essential to resolve the humanitarian crisis and structural challenges such as liquidity and debt problems of low-income countries, progress in combating climate change, and the ongoing fight against the pandemic.

Statistics:

  • The IMF predicts a 3.6% GDP growth for the current and the following year.
  • The world economy is expected to grow by 0.8 percentage points in 2022 and 0.2 percentage points in 2023.
  • Lithuania's growth forecasts have been revised down to 1.8%, which is 2.3 percentage points slower compared to the autumn forecast.
  • Inflation is expected to reach 13.3% this year and moderate to 4.3% next year.
  • China's growth forecast for 2022 is 4.4%.

Sources:

  • International Monetary Fund (IMF) World Economic Outlook
  • Gediminas Imbrasas, Chairman of the Board of the Bank of Lithuania
  • Contify.com news article, "IMF Predicts Slowdown in Global Economic Growth Amid Ukraine-Russia Conflict" (Copyright 2022 Euclid Infotech Pvt. Ltd.)
  • International Monetary Fund (IMF) meetings in Washington (news article does not provide specific date)

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