IMF said advanced economies will be back on track by 2024, but developing economies will be 5 per cent less than where they would be otherwise, as per Gita Gopinath, a senior economist at the end of the year.
Economies around the world have been negatively impacted by the coronaviruses and are slowly coming back into the recovery path.
The war in Ukraine has been a major setback to the global recovery, according to the First Deputy Managing Director of the International Monetary Fund.
'We had a serious downgrade to the global growth rate and the world continues to face headwinds because we have a cost of living crisis,' he said. She said that prices of commodities, including fuel and food, are going up around the world.
Gopinath said that central banks are trying to tackle this high level of inflation and are raising interest rates sharply, which they need to do, but that will also have consequences for global finance and trade.
Gopinath said there are very different recoveries around the world.
'While advanced economies will generally get back to where they would have been in the absence of the Pandemic in 2024, emerging and developing economies would be 5 per cent less than they would have been in the absence of the pandemic,' she said.
The recovery from the COVID-19 crisis has been uneven between countries, depending on their access to fiscal resources and vaccines, according to the panelists.
They discussed how a broader set of foundations for growth can ensure long-term economic prosperity and a return to international convergence as food, fuel and resource crises now risk further harming an equitable recovery.