IMF: The world economy is on the toughest test since World War II
The World Economic Forum, which is attended by European officials, IMF members, as well as Ukrainian political officials, started today in the Swiss city of Davos, and the main topic of the forum is mitigating the consequences of the economic crisis.
The World Economic Forum has resumed holding after a two-year hiatus due to the coronavirus pandemic.
The forum was addressed by the Executive Director of the International Monetary Fund (IMF), Kristalina Georgieva, who says that the world economy is on the toughest test since the Second World War.
“We are facing a potential merger, the world economy is facing the toughest test since World War II. Rising interest rates are putting pressure on countries, companies and households with large debts. Market turbulence and constant supply chain constraints are also a risk. And there are climate change, “said IMF Executive Director Georgieva.
She adds that the Russian invasion of Ukraine has exacerbated the crisis caused by the coronavirus pandemic, burdening the economic recovery and increasing prices globally.
The scale of the economic challenge was underscored by a new OECD report Monday, showing that the combined GDP of the G7 countries fell 0.1 percent in the first quarter.
To limit the economic blow, the IMF is urging government officials and business leaders to meet in Davos to discuss reducing trade barriers.
While some countries are struggling to feel the crisis as mildly as possible, some are moving in the opposite direction by imposing restrictions on trade in food and agricultural products that could exacerbate shortages and raise prices globally.
IMPLEMENTED BY:
