IMF: Advanced economies to be back on track

Addressing the World Economic Forum’s Annual Meeting 2022, International Monetary Fund’s Gita Gopinath said that advanced economies will be back on track by 2024. She, however, noted that developing economies will be 5% below where they would have been otherwise, had the Covid-19 pandemic had not struck. She added that the war in Ukraine has been a major setback to the global recovery.

“We had a serious downgrade to the global growth rate and the world continues to face headwinds because we have a cost of living crisis. Prices of commodities including fuel and food are going up around the world,” the First Deputy Managing Director of IMF said. The panellists also observed that the recovery from the COVID-19 crisis has been deeply uneven within and between countries, depending on their access to fiscal resources and vaccines. The fuel, food and resources crises are furthering the risk of an uneven recovery for the economies of the world.