The results of the International Monetary Fund (IMF) assessment reveal that the war in Ukraine is the single most important negative factor in the world economy this year.
The latest statement came from the head of the IMF, Kristalina Georgieva while attending the G20 summit in Bali, Indonesia.
He said, anything that creates more anxiety will affect the prospects of growth and meeting the needs of the public as a whole.
The IMF has previously issued a warning about the global economy being affected by the Russia-Ukraine war by cutting its 2023 growth forecast to 2.7% and a 3.2% slowdown in 2022.
Following the projection, the IMF in its report said it was the weakest growth profile since 2001 except for the global financial crisis and the Covid-19 pandemic.
The coronavirus and the war in Ukraine have disrupted supply chains and this has damaged growth from both domestic and international levels.
Citing Asia and the Pacific projections as an example, the IMF said the region could lose more than 3% in gross domestic product (GDP) if trade were cut off in key sectors.
In the meantime, the IMF also expects that the impact of the war in Ukraine will continue until next year.
