The IMF predicts slower economic growth in Ukraine

The IMF predicts slower economic growth in Ukraine.

The world economy will grow at a slower pace due to Russia’s aggression against Ukraine, according to a report by the International Monetary Fund (IMF).

This body forecasts a 3.6 percent increase this year, which is almost twice as small compared to the 6.1 percent increase recorded last year.

The IMF had initially forecast a 4.4 percent increase for this year. “The economic effects of the war are spreading widely,” the IMF report said.

The war has exacerbated negative economic trends, such as problems in the supply chain or even rising fuel and food prices.

“While there has been a steady recovery from the global economic collapse caused by the pandemic, the war has created a very realistic possibility that a large part of the income secured recently will be lost,” said the IMF chief economist Pierre-Olivier Gourinchas.

The IMF predicts that the Russian economy will shrink by 8.5 percent this year while that of Ukraine will fall drastically by 35 percent.

Likewise the United States, China and Europe are expected to face slower growth as a result of the war