The International Monetary Fund (IMF) suggested this Thursday the possibility of Russia going bankrupt because of the economic sanctions imposed by the rest of the countries for its invasion of Ukraine, and warned that the Russian economy is already contracting and is headed for a deep recession.
“The bankruptcy of Russia is no longer an unlikely event,” said the Fund’s managing director, Kristalina Georgieva, in a digital meeting with journalists to discuss the financial implications of the war in Ukraine.
Georgieva pointed out that what will determine how strong the recession in Russia will be will be the duration of the war and the sanctions, as well as the possibility that they will become more stringent and affect energy exports.
Global growth cut
With this information, the IMF will cut its global growth forecast due to the war in Ukraine.
“To sum up, we have a tragic impact of the war against Ukraine. We have a major contraction in Russia and we see the likely impact on our outlook for the world economy.”, he told reporters. “Next month (during the spring meetings) we will have a downward revision of our global growth projections,” he added. (I)
Source: Eluniverso
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