The global economy is now facing and will continue to face serious challenges due to the COVID-19 pandemic, the events in Ukraine and slowdown in China – as stated by the First Deputy Managing Director of the International Monetary Fund (IMF), Gita Gopinath, during the Brussels Economic Forum, TASS reports
She stated that the consequences of a sharp rise in commodity prices, oil and gas, and the cost of food are visible worldwide. This affects real incomes around the globe, causing high inflation and affecting people’s purchasing power. “In some parts of the world, this creates a very serious situation in terms of food insecurity. I’ll just add that it’s still not over. The shocks didn’t end. If you pay attention to the forecasts of the situation in the world, then for the most part they speak in favour of deterioration,” noted Gita Gopinath.
She also stressed that in the context of the events in Ukraine, Europe is one of the most affected regions.
Alongside sanctions and retaliatory measures, the slowdown in China and the coronavirus pandemic are having a significant impact on the global economy.
“The difficult period is not over, many more shocks may follow that will take us even further from positive growth towards higher inflation,” concluded the IMF First Deputy Managing Director.