April 22, 2024
World Economy

Global Economies Grappling with Lasting Impact of Ukraine War

The International Monetary Fund (IMF) forecast that Russia will see a 2.6 per cent economic growth in 2024, while its government forecasts a slightly lower growth rate of 2.3 per cent.

Two other giant economies, Japan and the United Kingdom, have slipped back into recession. They registered a shrinking trend in two quarters at a stretch.

It gave rise to a question if the largest economy, the US, too will face an economic recession.

While the effects of the Covid-19 pandemic may have been overcome relatively quickly, the effects of the war are enduring.

As there are different sanctions on Russian energy due to the war, other countries have no choice but to procure fuel at much higher prices. It intensified inflation, prompting the countries to raise their policy interest rate. But it slowed down the growth trajectory in the aftermath.

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