IMF cuts global growth forecasts on Russia-Ukraine war


A view of damage in the Ukrainian city of Mariupol under the control of Russian military and pro-Russian separatists, on April 17, 2022.

Anadolu Agency | Anadolu Agency | Getty Images

The International Monetary Fund on Tuesday cut its global growth projections for 2022 and 2023, saying the economic hit from Russia’s unprovoked invasion of Ukraine will “propagate far and wide.”

The Washington-based institution is now projecting a 3.6% GDP rate for the global economy this year and for 2023. This represents a 0.8 and 0.2 percentage point drop, respectively, from its forecasts published back in January.

“Global economic prospects have been severely set back, largely because of Russia’s invasion of Ukraine,” Pierre-Olivier Gourinchas, economic counsellor at the IMF, said in a blogpost Tuesday, marking the release of the IMF’s latest World Economic Outlook report.

Russia launched its invasion of Ukraine on Feb. 24 with officials like NATO’s Jens Stoltenberg noting that Moscow is hoping to gain control of the whole of its neighbor.

“The effects of the war will propagate far and wide, adding to price pressures and exacerbating significant policy challenges,” Gourinchas said in his blogpost.

The World Bank also cut its global growth expectations earlier this week, now estimating a growth rate of 3.2% from 4.1% for 2022.

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