The Strategist

IMF expects global economy to decline further in 2023

04/15/2022 - 03:36

The IMF's Managing Director Kristalina Georgieva warned on Thursday that the global economic growth forecast for next year will be reduced further due to the pandemic and the situation in Ukraine.

World Bank Group via flickr
World Bank Group via flickr
"We expect the global economy to contract further in 2022 and 2023," the IMF director said in remarks streamed on the organization's website.

"Fortunately for most countries," she says, "growth will continue to be in positive territory." She also mentioned that Russia’s aggression in Ukraine will have an influence on lower projections for 143 nations that account for 86 percent of global GDP this year.

Earlier in March, Georgieva stated that the IMF forecasts that the global economy would continue to grow in 2022, despite geopolitical events.

The IMF forecasted a 0.5 percent drop in global economic growth to 4.4 percent in 2022 earlier this year. According to Georgieva, true figures will be higher, but they will still be positive.