The IMF lowers its forecast for global economic growth due to the repercussions of the war in Ukraine

The International Monetary Fund, on Tuesday, sharply lowered its estimates of global economic growth in 2022 due to the consequences of the war in Ukraine, and warned that inflation will persist, especially in emerging countries.

The International Financial Commission said that the growth rate will reach 3.6% this year, down 0.8% from last January's forecast.

As for inflation, the Fund expects it to reach 5.7% for developed countries and 8.7% for emerging and developing economies.

The world is already facing problems related to inflation, due on the one hand to the loose monetary policy in many rich countries, and on the other hand to the supply problems exacerbated by the repercussions of the Corona pandemic.

The situation was exacerbated by the Russian war, with Russia and Ukraine responsible for supplies of key food and fuel supplies.

It is noteworthy that many of Ukraine's imports are currently inaccessible due to the war, and much of what Russia is selling due to sanctions imposed on it cannot be obtained.

America and China are the two largest economies

The world's two largest economies did not escape decreasing growth estimates, as it fell in the United States by 0.3 points to 3.7% and in China by 0.4 points to 4.4%.

The International Monetary Fund has sharply cut its growth forecast for Britain, as inflation erodes consumers' purchasing power and higher interest rates limit growth.

Britain's gross domestic product is expected to rise by 3.7%, the fund said, down one percentage point from its January estimate.

This percentage is close to the UK government's estimate (3.8%).

In the eurozone countries, the deterioration is greater - according to the IMF - with an expected growth of 2.8%, compared to 3.9% according to expectations last January.

It cut growth estimates for Germany, which relies heavily on Russia for energy, by 1.7% to 2.1%.

As for Russia's gross domestic product, it will contract this year by 8.5%.

Despite the sanctions imposed on Moscow, it is the Ukrainian economy that will decline sharply, by 35% this year due to the widespread devastation that has led to the flight of millions of its residents.