The IMF says the world economy is in the worst state since World War II

Inflation has risen around the world, food and energy prices have risen, the fund insisted.

The world economy is in its worst state in decades – since World War II. This was reported in a joint blog of IMF Managing Director Kristalina Georgieva and two other fund employees, published before the World Economic Forum in Davos.

Among the causes of such an economic state are Russia’s war against Ukraine, the coronavirus pandemic and the threat of climate change due to global warming. As a result, inflation has risen around the world, food and energy prices have risen.

The IMF warned the world’s countries against economic fragmentation, as the elimination of decades of integration would make the world more difficult and more dangerous.

“The cost of further fragmentation in countries is enormous. And people at all income levels will suffer, from high-paid professionals and middle-income factory workers who provide exports to low-wage workers who depend on food imports to survive, “the blog said.

It was also stressed that there will be an increase in migration in people’s attempts to find better conditions for life.

According to the IMF, to improve the state of the world economy, it is necessary:

• relax trade restrictions;

• solve the problem of debt payments, including by reorganizing payments;

• modernize the system of cross-border transfers;

• address the issue of climate change.

Remember that economic growth has slowed around the world. The reason is rising prices, the consequences of the war in Ukraine and the ongoing disruption in the supply chain. The decline is especially pronounced in Europe.

Earlier, US President Joe Biden said the war in Ukraine had led to rising gas and food prices around the world.

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