Ukraine war has slowed post-covid economic recovery, says IMF

Oil prices hit a seven-year high on Tuesday, with a barrel of Brent crude trading at nearly $106. However, according to the futures price, it is not very likely that oil will become cheaper in the coming weeks or months.

A military conflict in Ukraine will hit the economically developed countries the hardest (besides Ukraine and Russia).

Their gross domestic product is expected to increase by 3.3 percent this year and by only 2.4 percent next year. This is according to the current global economic outlook of the International Monetary Fund.

A significant economic slowdown will also come to China, which was used to growing at around eight per cent a year in recent years before the covid.

China’s development

It managed to repeat this GDP growth rate last year, but the International Monetary Fund attributes only 4.4 percent economic growth to China this year, while next year the Chinese economy is expected to expand by 5.1 percent.

India ahead of China?

China will be overtaken in GDP growth by India, whose economy will expand by 8.2 per cent this year and by less than 7 per cent in 2023, the International Monetary Fund predicts. Russia’s economy will shrink by 8.5 percent this year and 2.3 percent next year.

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