World economy decelerates due to conflict in Ukraine

Ahead of the annual spring meetings of the International Monetary Fund (IMF) and the World Bank (WB), on April 14, the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva made a speech. The conflict in Ukraine has slowed the recovery from the COVID-19 pandemic, slowing growth economy in most countries of the world.

The economic consequences of the conflict in Ukraine spread rapidly and widely to neighboring countries and beyond, affecting the most vulnerable people in the world, Ms. Georgieva said.

For families already struggling with higher food and energy prices, she said, this conflict has made the situation much worse.

The conflict in Ukraine has exposed rifts in the international system at a time when global cooperation is seen as the only solution, said the IMF chief.

The IMF is expected to release its latest updated economic forecast on April 19, possibly further lowering its forecast for global economic growth. In January, this financial institution lowered its growth forecast to 4.4%.

The same day, the World Bank warned that the conflict in Ukraine has “multiplied the risks” for poor countries in the Middle East and North Africa by raising food and energy prices, potentially causing social unrest. in this area.

The World Bank’s latest updated report on growth forecasts for the Middle East and North Africa region said that inflationary pressures caused by the COVID-19 pandemic could become more severe.

“The threat of pathogenic variants of COVID-19 remains and the conflict in Ukraine has multiplied the risks, especially for the poor,” said World Bank Vice President for the Middle East and the Middle East. North Africa Ferid Belhaj said.

According to the report, the inflation rate in the Gulf countries with large oil reserves could rise to 3% this year, up sharply from 1.2% in 2021 and will rise to 3.7% in the region. oil importing countries compared to 1.4% in 2021.

However, the World Bank forecasts that economic growth in the Middle East – North Africa region will reach 5.2% in 2022, the fastest growth rate in this region since 2016.

Ukraine is the world’s main grain producer, while Russia is a producer of energy and fertilizers that feed the agricultural sector. The Middle East and North Africa region depends mainly on wheat supplies from these two countries.

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