The world economy will grow at a slower pace because of Russia’s invasion of Ukraine, the International Monetary Fund said in a report Tuesday.
The organization forecasts growth of 3.6% this year, compared to 6.1% last year. Originally, it had predicted 4.4% growth this year.
“The economic effects of the war are spreading far and wide,” the IMF said in its report.
The war has exacerbated negative economic trends such as disrupted commerce and price hikes for fuel and food.
“In the matter of a few weeks, the world has yet again experienced a major, transformative shock,” IMF chief economist Pierre-Olivier Gourinchas wrote in the foreword to the fund’s World Economic Outlook report. “Just as a durable recovery from the pandemic-induced global economic collapse appeared in sight, the war has created the very real prospect that a large part of the recent gains will be erased.”
The IMF predicts the Russian economy will shrink by 8.5% this year, and Ukraine’s will fall by a whopping 35%.
The United States, China and Europe were also expected to see slower growth as a result of the war.
Some information in this report comes from The Associated Press.