Since April, the outlook for the global economy has worsened sharply due to inflation, China’s slowing economic growth and sanctions against the Russian Federation.
Next year, the world economy may face a global recession. This was stated in an interview with Reuters on Wednesday, July 6 by the head of the International Monetary Fund, Kristalina Georgieva.
“The outlook has deteriorated sharply since our last update (Global Growth Outlook – ed.) In April,” said the IMF’s Managing Director, citing widespread inflation, larger interest increases, a slowdown in growth. China’s economy, and increasing sanctions related to including the Russian war in Ukraine.
He noted that the world is in “very turbulent waters.”
Asked if she could rule out a global recession, she said: “The risk has risen, so we can’t rule it out.”
According to him, 2022 will be difficult, but 2023 is likely to be more difficult.
“The risks of a recession will increase in 2023,” the IMF chief stressed.
Georgieva said the fund will reduce its 2022 global growth forecast to 3.6% in the coming weeks for the third time this year, adding that IMF economists are still finalizing the new figures. Recent economic data showed that some major economies, including China and Russia, contracted in the second quarter, he said, noting that risks are even higher in 2023.
The IMF is expected to release an updated forecast for 2022 and 2023 at the end of July, after cutting its forecast by almost a full percentage point in April.
It will be recalled that in May, the IMF announced the worst state of the global economy since World War II.
As reported, economic growth around the world has slowed. The reason is rising prices, the consequences of the war in Ukraine and the ongoing disruption in the supply chain. The decline is especially pronounced in Europe.
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Source: korrespondent
I am David Wyatt, a professional writer and journalist for Buna Times. I specialize in the world section of news coverage, where I bring to light stories and issues that affect us globally. As a graduate of Journalism, I have always had the passion to spread knowledge through writing.