IMF likely to trim global forecast due to Ukraine war

The International Monetary Fund (IMF) expects to further cut its global growth estimate due to the ongoing war in Ukraine. The IMF in January cut the global growth forecast for 2022 to 4.4% due to the negative impact of the Omicron variant of Covid-19. IMF managing director Kristalina Georgieva said that the sanctions Western countries have imposed on Moscow in response to the war will lead to a “sharp contraction” of the Russian economy. Georgieva said this is in addition to the economic damage caused by Russia’s invasion of Ukraine. She said that Russia is “moving into a deep recession” and a debt default is no longer “an improbable event”. Georgieva said this crisis is like no other, and compared to the coronavirus pandemic has reached even more shocking territory.