IMF expects to cut global growth forecast due to Russia-Ukraine crisis

IMF expects to cut global growth forecast due to Russia-Ukraine crisis

Washington:The IMF expects to cut its global growth estimate due to the economic damage caused by Russia's attack on Ukraine, Managing Director Kristalina Georgieva said Thursday. "You all see the horrific toll on people, loss of lives, human suffering, massive increase in refugees. But there is also a significant economic toll," the head of the Washington-based crisis lender told reporters. In addition to the damage to Ukraine, 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. Russia is "moving into a deep recession" with massive depreciation of the ruble and sinking purchasing power for its citizens, she said, adding that a debt default is no longer "an improbable event." The IMF in January cut the global growth forecast for 2022 to 4.4 percent due to the negative impacts of the Omicron variant of COVID-19, after worldwide GDP rose by 5.9 percent last year. The IMF is due to publish an updated World Economic Outlook next month which will include "a downward revision of our growth projections," she said. The war and sanctions, which include a US ban on Russian oil imports, are spilling over