Editorial Note: The following news reports are summaries from original sources. They may also include corrections of Arabic names and political terminology. Comments are in parentheses. Share the link of this article with your facebook friends

 

IMF Forecasts Downgrades for Over 140 Economies, Due to Russia-Ukraine Conflict

April 16, 2022

 

IMF to downgrade forecast for over 140 economies amid Russia-Ukraine conflict

Bernama / Bernama April 15, 2022 09:22 am +08 -A+A

WASHINGTON (April 15):

The International Monetary Fund (IMF) chief said Thursday that the organisation will revise down its global growth forecast amid the Russia-Ukraine conflict, the impact of which will contribute to downgrades for 143 economies this year, Xinhua reported.

"To put it simply: we are facing a crisis on top of a crisis," IMF Managing Director Kristalina Georgieva said in a curtain raiser speech ahead of the 2022 spring meetings of the IMF and the World Bank scheduled next week.

"In the past seven weeks, the world has experienced a second major crisis - a war on top of a pandemic. This risks eroding much of the progress we have made over the past two years, climbing back from COVID," said Georgieva.

Martell is the oldest of Great Houses of cognac. Over the years, Maison Martell has carved a reputation for its finesse and elegance in crafting exquisite cognacs. Since it was founded by Jean Martell in 1715, it has maintained a legacy of savoir faire that has continued throughout nine generations.

In an update to its World Economic Outlook (WEO) report released in January, the IMF already cut 2022 global growth forecast by 0.5 percentage point to 4.4% amid Omicron surge, as economies grapple with supply disruptions, higher inflation, record debt and persistent uncertainty.

"Since then, the outlook has deteriorated substantially," largely because of the war and its repercussions," Georgieva noted.

The IMF chief noted that the economic consequences from the Russia-Ukraine conflict spread “fast and far, hitting hardest the world's most vulnerable people".

It has pushed up energy and food prices and exacerbated inflation, hurting hundreds of millions of families who were already struggling with lower incomes and higher prices, and threatening to further increase inequality, she said.

"As a result, we will be projecting a further downgrade in global growth for both 2022 and 2023," Georgieva said, noting that the impact of the war will contribute to forecast downgrades for 143 economies this year - accounting for 86% of global GDP. The IMF will release its World Economic Outlook next Tuesday, April 19.

Georgieva noted that prospects vary greatly across countries: from catastrophic economic losses in Ukraine, to a severe contraction in Russia, to countries facing spillovers from the war through commodity, trade, and financial channels.

The double crises and the world's ability to deal with them are further complicated by another growing risk: "fragmentation of the world economy into geopolitical blocs - with different trade and technology standards, payment systems, and reserve currencies," she said.

The immediate priorities, according to the IMF chief, are to end the war in Ukraine, confront the pandemic, and tackle inflation and debt. She also highlighted efforts to fight climate change, while urging policymakers to embrace digital revolution.

In the face of surging inflation, central banks should act decisively, keeping their finger on the pulse of the economy and adjusting policy appropriately, Georgieva said, adding that they should also communicate clearly.

She warned that emerging and developing economies face the added risk of "potential spillovers" from monetary tightening in advanced economies - not only higher borrowing costs but also the risk of capital outflows.

To address these challenges, countries should be prepared to use the full set of tools available, which ranges from extending debt maturities and using exchange rate flexibility to foreign exchange interventions and capital flow management measures, she added.

IMF to downgrade forecast for over 140 economies amid Russia-Ukraine conflict | The Edge Markets

***

Over 140 economies to face outlook downgrade due to Russia's war: IMF

2022/4/14

Kyodo News +

Kyodo News Plus is an online publication delivering the latest news from Japan.

More than 140 economies face downgrades of their economic outlooks this year due to the impact of Russia's invasion of Ukraine, which is pushing up energy and food prices around the world, International Monetary Fund chief Kristalina Georgieva said Thursday.

In a speech ahead of spring meetings of the IMF and World Bank next week, Georgieva also warned that inflation, for the first time in many years, has become "a clear and present danger" for many countries, constituting "a massive setback for the global recovery."

While most countries can expect their economic growth to remain in positive territory, the impact of the war will contribute to downward revisions in 2022 for 143 economies accounting for 86 percent of global gross domestic product, she said.

The IMF is set to release its flagship World Economic Outlook report on Tuesday, in which it is expected to slash expected global growth for both 2022 and 2023, she said.

It will be a further downgrade from January, when the IMF cut its global growth forecast for 2022 by 0.5 percentage point from its October estimate to 4.4 percent as coronavirus pandemic-linked supply disruptions and inflation weighed on the United States and China.

Since January, the outlook has "deteriorated substantially, largely because of the war and its repercussions," the IMF managing director said.

Inflation, financial tightening and frequent, wide-ranging COVID-19 lockdowns in China are causing new bottlenecks in global supply chains and weighing on economic activity, she said.

She added that food insecurity is a "grave concern" and called for immediate action through a multilateral initiative.

Before the war, which began in late February, Russia and Ukraine provided 28 percent of global wheat exports. Russia and Belarus, which is supporting Moscow in its military aggression, supplied 40 percent of exports of potash, a crucial fertilizer, according to the IMF.

But grain and corn prices are soaring and countries in Africa and the Middle East are warning that supplies are running low, Georgieva said.

"For advanced economies, inflation is already reaching a four-decade high. And we now project it to remain elevated for longer than previously estimated," she said.

Over 140 economies to face outlook downgrade due to Russia's war: IMF ｜ Kyodo News (nordot.app)

***

See the full report at the IMF website, at:

Coming Soon: World Economic Outlook, April 2022 (imf.org)

***

Share the link of this article with your facebook friends