Jan 13, 2022
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IMF warns of new economic shocks due to surge in COVID-19

Another surge in the incidence of coronavirus will slow down the pace of global economic recovery, in connection with which the world will have to adapt to new economic shocks, said the head of the International Monetary Fund (IMF) Kristalina Georgieva.

Analysts of the organization meet every three months and update forecasts for economic growth. Despite the impending slowdown, the head of the IMF believes that there are many reasons for optimism.

“We were hoping to get more recovery momentum in 2022, but already in the last month of the previous year, we saw that momentum waning. The two major growth drivers of the global economy, the US and China, have been slowing down. And then we got hit by the Omicron. There is no doubt that this will lead to economic shocks and increase uncertainty,” Georgieva added.

The World Bank earlier announced that Russia’s GDP will slow down to 2.4% in the new year. Such a scenario is being implemented in the context of the tightening of macroeconomic policy by the Central Bank of the Russian Federation and a decrease in domestic demand.

Microsoft founder Bill Gates believes that the pandemic could end as early as this year. A more contagious strain is unlikely to emerge, FederalPress quoted him as saying.

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