The increase in the cost of living, tightening of financial conditions in most regions, Russia's war against Ukraine and the protracted COVID-19 pandemic - all this has a strong impact on the world economy.

The International Monetary Fund says in a new forecast that global growth will slow from 6% in 2021 to 3.2% in 2022 and 2.7% in 2023.

This is the weakest growth profile since 2001, excluding the global financial crisis and the acute phase of the COVID-19 pandemic.

This is stated in the review of the world economy (World Economic Outlook).

The IMF forecasts global inflation to rise from 4.7% in 2021 to 8.8% in 2022, but will decline to 6.5% in 2023 and 4.1% by 2024. 

"The Russian invasion of Ukraine has led to an energy crisis in Europe, which has sharply increased the cost of living and hampered economic activity...More broadly, the conflict has also led to an increase in food prices on world markets, despite the recent decline in prices following the Black Sea grain agreement, which created serious difficulties for low-income families around the world, especially in low-income countries," the Fund emphasized.

What's more, the IMF confirmed the forecast of a 35% drop in Ukraine's real gross domestic product in 2022.

The Fund explained that for Ukraine, all forecasts for 2022-2027, except for forecasts of real GDP and consumer prices, "were omitted due to an extremely high degree of uncertainty."

Real GDP and consumer prices are projected to 2022.

Russia's GDP is forecast to fall by 3.4% this year and slow to 2.3% next year.

"The contraction in the Russian economy is less severe than previously forecast, reflecting the resilience of crude oil exports and domestic demand due to strong fiscal and monetary policy support and the restoration of confidence in the financial system," the report said.

It will be recalled that the International Monetary Fund declared that the world economy is in the worst state in the last 80 years.

Budget deficit of Ukraine: what is known

In September, the budget deficit of Ukraine amounted to UAH 75 billion.

Prime Minister Denys Shmyhal announced that the state budget deficit in 2023 will amount to approximately $38 billion.

According to him, since the beginning of the full-scale war, Ukraine has received $17.5 billion from the Western allies.

Currently, Kyiv is negotiating with the EU, the USA and the IMF about the need to finance the budget deficit for the next year.

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