IMF: GDP growth rates of countries in 2023 to be below 3% due to conflict in Ukraine

The Ukraine conflict will cause global GDP growth to fall below 3% this year, which will not be easy, Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva said on March 30, Report informs referring to TASS.

The IMF expects 2023 to be another difficult year, with global economic growth falling below 3% due to the effect of the war in Ukraine, she said, speaking at the Boao Forum for Asia (BFA) Annual Conference 2023 in Boao, south China’s Hainan Province.

According to Georgieva, the world is witnessing a rapid transition from low to much higher interest rates.

Inflation inevitably creates turbulence for the banking sector of some economically developed countries, she added.

She noted that recently it has become increasingly difficult for countries to formulate a development strategy.

Asia is the source of momentum, and the IMF predicts that China and India will contribute 50% to global growth this year, Georgieva said.

However, they will also feel instability, she added.