IMF: The global economy is facing the biggest test since World War II

The state of the global economy at the moment may be the worst since World War II. This was stated by the International Monetary Fund (IMF).

“As politicians and business leaders travel to Davos, the global economy faces what may be its biggest test since World War II,” the International Monetary Fund said.

This is due to the coronavirus pandemic, the situation in Ukraine and the threat of climate change, the fund added. All of these factors led to higher inflation with rising food and energy prices. All these reasons put a heavy burden on the shoulders of the end users.

The International Monetary Fund considered that in order to resolve the current situation, it is necessary to ease trade restrictions. Then the shortage of goods will gradually be neutralized, and the prices of food and other goods will fall. In addition, there is a need for collective participation in addressing the debt problem of countries, the modernization of cross-border payments and climate change.

The turmoil in the global economy is far from over, Gita Gopinath, deputy managing director of the International Monetary Fund, said May 18. First of all, economic difficulties are associated with the continuation of the coronavirus pandemic, the events in Ukraine and the slowdown in economic growth in China.

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