The International Monetary Fund (IMF) said the global economic downturn is the worst since World War II. A report published on the organization’s blog says.
According to the IMF, the situation was affected by the coronavirus pandemic, Russia’s military operation in Ukraine and the threat of climate change due to global warming. As a result, inflation has risen all over the world, food and energy prices have grown.
According to the IMF, to improve the state of the world economy, it is necessary to:
- Loosen trade restrictions;
- Solve the problem of debt payments, including through the restructuring of payments;
- Modernize the system of cross-border transfers;
- Tackle the climate change issue.
The IMF added that consequences of the crisis would primarily affect the most indebted countries and companies that would have to rebuild supply chains. However, according to the organization, the negative consequences will still affect all categories of the population, including the richest.
Earlier, the European Commission updated the global macroeconomic outlook, taking into account the impact of the conflict in Ukraine and sanctions against Russia on the countries. The European Union expects a slowdown in global economic growth in 2022 from 5.7 to 3.2 percent.
