IMF Managing Director Kristalina Georgieva told CNBC yesterday, “we think that we would be downgrading our growth projections as a result of the crisis (in Ukraine), but we still expect the world to be in positive growth territory.”
In the January outlook IMF projected global growth of 4.4% in 2022. For now, it’s unsure how the global economy would be affected by Russia invasion on Ukraine. “Obviously, how long this war goes is the main uncertainty factor we face,” Georgieva said.
Separately, Georgieva also said, sanctions on Russia for its invasion of Ukraine would cause an abrupt contraction of the Russian economy. Russia is facing a “deep recession” this year, and sovereign debt default is no longer seen as “improbable”.