Ukraine war a ‘massive setback’ for the global recovery, says IMF boss

Ukraine war is a ‘massive setback’ for the global recovery, warns IMF boss Kristalina Georgieva

One of the world’s leading economists has warned the war in Ukraine is a ‘massive setback for the global recovery’ as it pushes up prices.

Kristalina Georgieva, managing director of the International Monetary Fund (IMF), said ‘we are facing a crisis on top of a crisis’, with Russia’s invasion of its neighbour intensifying problems caused by Covid.

Ahead of the IMF’s spring meeting next week, Georgieva, 68, said the Washington DC-based organisation would be slashing its economic growth forecasts.

IMF chief Kristalina Georgieva (pictured) said ‘we are facing a crisis on top of a crisis’, with the war in Ukraine intensifying problems caused by Covid

‘Fortunately, for most countries, growth will still remain in positive territory.

‘That said, the impact of the war will contribute to forecast downgrades for 143 economies this year.’

Georgieva – who grew up in Bulgaria, behind the Iron Curtain – invoked memories of the aftermath of the Second World War when she said: ‘The actions we take now, together, will determine our future in fundamental ways.

‘It reminds me of [the conference at] Bretton Woods in 1944 when, in the dark shadow of war, leaders came together to envision a brighter world.

‘It was a moment of unprecedented courage and cooperation. We need that spirit today, as we face bigger challenges and more difficult choices.’