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IMF expects to cut global growth forecast

11 March 2022 05:19 (UTC +04:00)

The International Monetary Fund has lowered its global growth forecast for next month because of the war and sanctions against Russia, which have caused a contraction in global trade, APA reports citing BBC.

IMF managing director Kristalina Georgieva said the Russian economy faced a "deep recession" and that a default on the country’s debt was not an "improbable" eventuality.

This, she said, is spilling over into the global economy, causing a rise in energy and food costs.

"We got through a crisis like no other with the pandemic. We are now in an even more shocking territory. The unthinkable happened: We have a war in Europe," she added.

In another example of Russia's growing isolation, the IMF's offices in Moscow are no longer operational.

Ms Georgieva said that the IMF has no program or policy relations with Russia at this point. Russia however retains its membership in the global lender.