The Russian War Tragically Affected the World Economy 

by Meifan Honcharuk
Friday, April 14, 2023
The Russian War Tragically Affected the World Economy 

Georgieva, IMF: "The worst medium-term forecast for a decade"

In her speech at the IMF conference in Washington, the managing director of the fund, Kristalina Georgieva, said that the Russian war caused supply disruptions and misinformation about world priorities.

"Russia's invasion of Ukraine is not only a tragedy for the Ukrainian people, it is a tragedy for the world community, because it sends a message that defence spending must increase, and the peace dividend disappears," Kristalina Georgieva.

Moreover, unprovoked aggression and violation of all international norms, which the Kremlin allows itself, have endangered the very concept of peace, reduced geopolitical unity, which in turn has a negative impact on the global economy. Russia achieved this effect also due to the fact that the world has not yet fully experienced the consequences caused by the COVID-19 pandemic.

Georgieva states that the world economy is not in recession, but it is in its most vulnerable form. The latest IMF World Economic Outlook reports: even the economies of even advanced countries are unlikely to return to the target until 2025.

"This is the worst medium-term forecast in decades," Ms Georgieva.

The managing director noted that every state and organisation has tools to improve the situation, and one of them is strengthening the sphere of international supplies and logistics.

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