Malpass also said that three-fifths of low-income nations are in debt distress or at high risk of it. He expects the debt crisis to continue to worsen in 2022. Policies need to be adjusted to enhance supply, not just raise demand. Malpass was addressing a media roundtable on the Group’s spring meetings this year.
The downgrade in the global outlook was due to the economic impact of the Russia-Ukraine war, IMF said. World output is now projected to grow by 3.6 per cent this calendar year and the next, slowing sharply from the 6.1 per cent expansion seen in 2021.
“The war in Ukraine has triggered a costly humanitarian crisis that demands a peaceful resolution,” the IMF said forecasting a massive 35 per cent contraction for Ukraine in 2022. The conflict, the Fund noted, would contribute not only to a ‘significant slowdown’ in 2022, but also to inflation—via trade, commodity markets and financial channels.
The IMF's latest World Economic Outlook also projected India’s economy to expand by 8.2 per cent in this fiscal and by 6.9 per cent next year.
ALCHEMPro News Desk (KD)
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