24 April, 2022
London (CNN Business) - The International Monetary Fund has slashed its expectations for global economic growth over the next two years because of Russia’s invasion of Ukraine, comparing the ripple effects from the conflict to an “earthquake.”
“The economic effects of the war are spreading far and wide,” the organisation said in its latest outlook, published Tuesday.
The IMF now expects the world economy to expand by 3.6% in this year and the next, a sharp deceleration from growth of 6.1% in 2021. The new forecasts reflect downgrades of 0.8 and 0.2 percentage points, respectively, from its January forecast.
The World Bank also slashed its global growth forecast this week. It now expects the world economy to expand by 3.2% in 2022.