The International Monetary Fund (IMF) has lowered expectations for global economic growth over the next two years, due to the Russian occupation of Ukraine.

According to the IMF, the world economy is expected to grow by 3.6% in 2022 and 2023, from 6.1 that was the forecast, writes CNN.

“The war will severely hamper the global recovery, slowing growth and further raising inflation,” the IMF said in its report, noting that the world economy had not fully recovered from the coronavirus pandemic when Russia invaded Ukraine in late February.

The IMF says the conflict will hit Ukraine and Russia hardest. According to forecasts, the Ukrainian economy could shrink by 35% this year, while the Russian economy by 8.5% as a result of Western sanctions.

Because the war has caused an increase in the price of energy or other commodities, also causing an increase in inflation, its effects will be felt all over the world.