Russia’s war against Ukraine has tragic consequences for the global economy, – IMF head

Russia’s war against Ukraine has tragic consequences for the entire global economy, as it sends extremely negative messages for interaction and has a specific impact on supply security.

This was stated by Kristalina Georgieva, Managing Director of the International Monetary Fund.

“Russia’s invasion of Ukraine is not only a tragedy for the Ukrainian people, it is a tragedy for the international community, because it sends a message that defense spending should increase, and the peace dividend is disappearing,” the IMF chief said.

She emphasized that the world can no longer take peace for granted. According to her, in such a situation, geopolitical reliability disappears, which also has a negative impact on the economy.

At the same time, according to Georgieva, the world continues to feel the effects of COVID-19, which primarily affected the security of supply chains. In addition, the impact of globalization remains, which has not benefited everyone.

This is the reason for the current situation, when the global economy, although not in recession, is, according to Georgieva, in one of the weakest phases of development. In this regard, the IMF chief recalled that the latest World Economic Outlook (WEO) forecasts global growth of no more than 2.8%, and about 3% over the next five years.

“This is the worst medium-term forecast in a decade,” she said.

At the same time, Georgieva emphasized that there are opportunities to strengthen supply security and improve the economic situation in other areas, and this is the subject of active discussions.

Tags: war