The International Monetary Fund (IMF) has announced a recession in some countries due to declining growth rates and rising inflation during the Ukraine war.
On the 24th, the Bank of Korea released data on 270,000 households with liquidity risk, with household debt reaching 1862.1 trillion won last year, up 7.8 percent from the same period last year, with corporate loans 1541 trillion won, a 25.5 percent increase from non-bank financial institutions.
The Organization for Economic Cooperation and Development (OECD)’s “Ukrainian War” economic report on the 17th recommended taxation on corporate income generated from rising energy prices in the Ukraine war.
The OECD report revised the 4.5% growth in December last year, forecasting an additional 2.5% increase in inflation as the global economic growth rate falls by more than 1%p.
The OECD report on the 17th released a forecast on the 17th that the euro zone, where the euro is used, and the US dollar, will fall by 0.9%p, in response to a 1%p decline in the overall growth rate of the OECD.
At the forum on the 22nd, IMF President Georgieva said, “The increase in energy and food prices and punitive sanctions against Russia as a result of the collateral effects of the invasion of Ukraine” and “Some countries are already in a difficult situation due to the corona crisis, and some countries may face a recession.” "We will lower our global economic growth forecast in next month's IMF report," he said.
The International Monetary Fund (IMF) previously projected a growth rate of 4.4% in January, then lowered it by 1% in March to 3.4%.
In December of last year, the OECD projected a 4.5% global economic growth rate for this year and a 4.2% increase in next year's inflation rate of 4.2%. Inflation extension was corrected.
In particular, the OECD report recommended taxation on corporate income generated from rising energy prices in the Ukraine war as a way to support the vulnerable in low-growth, high-inflation.
On the 23rd, President Moon Jae-in nominated Lee Chang-yong, director of the Asia-Pacific Affairs Bureau of the International Monetary Fund (IMF) as a candidate for the governor of the Bank of Korea.
Georgieva, the head of the International Monetary Fund (IMF), remarked on the 22nd, "Until now, we have focused on raising the economic growth rate and reducing the inflation rate that has been a problem. However, we are faced with the complete opposite situation, where the growth rate is falling and inflation is rising,' he said.
Lee Chang-yong, the nominee for the governor of the Bank of Korea, announced on the 24th that “growth” was given priority as he said, “I will seriously consider how to manage monetary policy while taking into account growth, inflation, and financial stability in a balanced way.”
Korean media reported on the OECD report and deleted all recommendations for “strengthening taxation on companies that benefit from rising energy prices.”
The nominee continued, "There is a growing concern that domestic inflation and economic risks will expand at the same time."
Egypt requested a bailout from the International Monetary Fund (IMF) on the 24th due to a foreign currency outflow due to a surge in inflation due to the Ukraine war.
Egypt had the pound depreciated in half during the 2016 IMF bailout of $12 billion.
The Egyptian government plummeted 14% due to the depreciation of the pound just before the IMF bailout request.