The global economy is recovering only very slowly due to the war in Ukraine and high inflation.
(Photo: dpa)
Washington The Europe Director of the International Monetary Fund (IMF), Alfred Kammer, is assuming new economic risks for the continent. “We remain in a challenging environment,” he told the Handelsblatt.
Although energy prices have fallen recently, they are unlikely to return to the level before the Ukraine war in the medium term. According to Kammer, this factor alone will reduce the gross domestic product (GDP) in Europe by around one and a half percentage points in the foreseeable future.
According to the IMF, the fight against inflation is proving to be much tougher than expected a few months ago, and this applies above all to Europe. Kammer sees “stubborn and persistent inflation” as the “number one problem” for the continent. Specifically, headline inflation will “fall significantly” this year as a result of falling energy prices. “So there is light at the end of the tunnel,” says Kammer.
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