World Economic Outlook, April 2022: War Sets Back the Global Recovery

The war in Ukraine has caused a humanitarian crisis and economic damage, leading to a slowdown in global growth in 2022 and 2023. Inflation projections have increased due to commodity price increases and broadening price pressures. Multilateral efforts are essential to respond to the crisis and address other global challenges.

Format: Paperback / softback
Length: 199 pages
Publication date: 30 August 2022
Publisher: International Monetary Fund (IMF)

The war in Ukraine has resulted in a devastating humanitarian crisis that urgently requires a peaceful resolution. Simultaneously, the economic consequences of the conflict are expected to lead to a significant slowdown in global growth in 2022, exacerbating inflationary pressures. The soaring prices of fuel and food have particularly impacted vulnerable populations in low-income countries, causing severe hardship. Global growth projections for 2022 and 2023 have been revised downwards, with estimates suggesting a decline from an initial projection of 6.1 percent in 2021 to 3.6 percent in 2022 and 2023. This represents a decrease of 0.8 and 0.2 percentage points, respectively, compared to January's estimates. Beyond 2023, global growth is projected to moderate to approximately 3.3 percent over the medium term. The war-induced surge in commodity prices and broadening price pressures have contributed to elevated inflation projections for advanced economies and emerging market and developing economies in 2022. These projections stand at 5.7 percent and 8.7 percent, respectively, representing increases of 1.8 and 2.8 percentage points compared to last January's estimates.

In response to this multifaceted crisis, multilateral efforts are paramount. These efforts should encompass initiatives to address the humanitarian situation, prevent further economic fragmentation, maintain global liquidity, manage debt distress, combat climate change, and ultimately end the pandemic. By pooling resources and expertise, countries can work together to mitigate the devastating impacts of the war and build a more resilient and sustainable future for all.

The war in Ukraine has underscored the critical importance of diplomacy, dialogue, and international cooperation in resolving conflicts and addressing global challenges. It is imperative that nations come together in solidarity and demonstrate their commitment to promoting peace, security, and prosperity for all. Only through collective action and shared responsibility can we overcome the immense challenges posed by the war and work towards a brighter and more peaceful world.

Weight: 573g
ISBN-13: 9781616359423