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Growth will slow to 2.1% in 2022, with inflation for the year soaring to 5.3%, with the effects of Russia's invasion of Ukraine adversely affecting global economic prospects and lead to further inflationary pressures, estimates the International Economic Fund (IMF) in the context of the World Economic Outlook in April, which was published on Tuesday.
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Growth rate will be reduced to 2.1% in 2022, Inflation for the year jumped to 5.3%, with the effects of the Russian invasion of Ukraine adversely affecting the global economic outlook and leading to further inflationary pressures, the International Monetary Fund (IMF) estimates in the context of the World Economic Outlook April released today.
The IMF estimates that the global economic outlook has deteriorated, mainly due to Russia's invasion of Ukraine, which is causing a tragic humanitarian crisis in Eastern Europe, and sanctions against Russia aimed at ending hostilities.
According to the & nbsp; IMF, the new crisis is unfolding at a time when & nbsp; the global economy was recovering from the coronavirus health crisis, while frequent and widespread lockdowns at construction sites in China could cause new delays in global supply chains. “Apart from the immediate humanitarian impact, the war will lead to a significant setback in the global recovery, slowing growth and further increasing inflation,” the IMF said.
For the world economy, the IMF forecasts a growth rate of 3.6% in 2022 and 2023, downgrading the previous WEO estimate of January by 0.8% and 0.3, respectively, with the downgrade mainly reflecting the effects of the Russian invasion on Ukraine.
For Cyprus, the IMF forecast for 2022 and 2023 speaks of a growth rate of 2.1% and 3 , 5% respectively. The forecast for the current year is also in line with the estimates published last month after the audit of the Cypriot economy in the context of the consultations under Article 4.
According to the IMF, inflation will jump to 5.3% in 2022 to fall to 2.3% next year.
As for unemployment, the IMF estimates that from 7.5% in 2021, will reach 8.5% in 2022 and will fall again to 7.5% in 2023. Moreover, the current account deficit from 7.6% of GDP will reach 9.4% in 2022 and will fall to 8.3% next year.
According to the IMF, the US growth rate will be 3.7% and 2.3% in 2022 and 2023, respectively, while in the eurozone the growth rate will be limited to 2.8% and 2.3% respectively. 2022 and 2023.
In Greece the growth rate will reach 3.5% and 2.6% in 2022 and 2023 respectively, while in the United Kingdom real GDP will grow at a rate of 3.7% and 1.2% respectively in 2022 and 2023 respectively.
However, the Fund estimates that the contraction of economic growth in winter Ukraine will reach -35% in 2022 without giving an estimate for 2023, while the Russia's economy will shrink by 8.5% in 2022 and 2.3% next year.
& nbsp; IMF reports mainly through commodity markets, trade and financial interconnections.
He also notes that because Russia is an important supplier of oil, gas and metals and, together with Ukraine, wheat and corn, the expected decline in the supply of these goods has already led prices to rise sharply.